Dude, put down the pipe. Barely double digit gross margins before carrying costs and corp overhead (which they don’t fully allocate to their homes, very fraudulent unit economics). There’s also a million competitors and no brand loyalty in ibuying. They keep talking about Phoenix, everyone is doing great there. What about Dallas??? Complete disaster for them. Opendoor is desperate for cash. The company is actually crumbling.
That is the total home value reflected as sale / turnover. Their margin on such (as they are effectively acting as a broker) should be seen as turnover. You're sitting in the 15x to 20x range.
Another excellent post - thanks for your work in putting this together!
Dude, put down the pipe. Barely double digit gross margins before carrying costs and corp overhead (which they don’t fully allocate to their homes, very fraudulent unit economics). There’s also a million competitors and no brand loyalty in ibuying. They keep talking about Phoenix, everyone is doing great there. What about Dallas??? Complete disaster for them. Opendoor is desperate for cash. The company is actually crumbling.
Spot on. Is there any data on SG&A and R&D?
Fantastic read as usual. I should probably get myself an IPOB as well. Can't wait for the public offering!
How can the company be only valued at 1x its 2019 revenues?
That is the total home value reflected as sale / turnover. Their margin on such (as they are effectively acting as a broker) should be seen as turnover. You're sitting in the 15x to 20x range.