Opendoor: A House of Cards, Maybe

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Opendoor Technologies (OPEN 7.71%). They lose money. A lot of it. That’s the first thing. And it’s a big one, really. So it goes.

Now, some folks like to gamble. Good for them. But for the rest of us, let’s just peek behind the curtain, shall we? Two things to consider before you decide to join the fun.

1. Flipping Houses at Scale? A Curious Notion

Opendoor, at its heart, buys houses and then sells them again. A house flipper, essentially. Perfectly respectable, if you’re doing one or two. People have been doing this in their garages for generations.

But Opendoor wants to flip thousands of houses. Which is…ambitious. It’s like trying to herd cats, only the cats are made of drywall and mortgages. They’ve been losing money doing this, which suggests maybe, just maybe, it’s not as easy as it looks. The universe, you see, doesn’t reward hubris.

A small investor knows the neighborhood, can hammer a nail straight, and understands that every house is a little bit different. Opendoor is trying to standardize something that resists standardization. It’s a bit sad, really.

2. The Magic Word: Artificial Intelligence

The new CEO, Kaz Nejatian, started talking about “artificial intelligence.” Everyone’s talking about artificial intelligence. It’s the new god, apparently. But saying the word doesn’t make it so. So it goes.

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The risk is this: they’re cutting staff, hoping AI will pick up the slack. But what if it doesn’t? What if AI is just as confused by leaky faucets and picky buyers as the rest of us? They could lose all that human knowledge, all that experience. Then they’ll be left with a very expensive algorithm and a pile of unsold houses. A bleak picture, wouldn’t you say?

Best to Wait for Evidence, Perhaps

Mr. Nejatian has laid out some goals, some milestones. That’s good. Let’s see if they actually hit them. Most of us should probably wait a year, maybe more, before taking the plunge. It’s not that I think they’ll fail, it’s just that things rarely work out as planned. The universe has a sense of humor, and it’s rarely funny.

If the red ink continues to flow, well, Opendoor might find itself in a bit of a pickle. A going concern needs to, you know, go. And that requires money. So it goes.

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2026-02-02 02:34