Source: Opendoor Brand Assets
Opendoor recently became publicly traded through a merger with the SPAC, Social Capital Hedosophia Holdings II (NYSE: IPOB). In my opinion, IPOB, and Opendoor by extension, offers an excellent play on the disruption of the real estate industry. Opendoor has demonstrated product-market fit, improving unit economics, and a business model that can scale at a high growth rate.
The company’s sales grew ~150% yoy in 2019, and while the pandemic has led to a major contraction in home sales in the past quarter, the overall housing market appears to have mostly recovered to pre-pandemic activity as of August. Given the SPAC merger and other private funding, Opendoor has accumulated enough financial ammunition to continue tackling their proclaimed trillion-dollar market opportunity with some vigour. The company has the potential to become the dominant marketplace for house sales throughout the country and is worth an investment at the