OpenDoor the next 'big thing'?

Interested to know the community thoughts on OPENDOOR (ticker OPEN)
Its a digital marketplace to buy and sell houses. Awesome concept

Seems it has a realistic chance to be a ‘Carvana’ type of stock for the housing industry. They are a young company so hiccups in store but we’re talking about potential. Huge potential.

Ceiling, dare I say, may be an ‘Amazon’ type adoption and marketplace

With all that said, I haven’t bought in yet =/. Even though Zoya has it as compliant, I am a little leery of the ‘financing’ portion of the business. I dont know what percentage of the business that compromises. Basically I am wary that lending, financing may play a more prominent role as they scale which may lead them to become a Haraam company to invest in.

Anyways…interesting company and interested to hear ya’ll thoughts

We recently downgraded the stock to Questionable (should be reflected in the app shortly). While the company earns the majority of their revenue through home sales, it’s concerning to see their expansion into the conventional mortgage loan and insurance business. They haven’t disclosed detailed figures yet so it’s difficult to determine the exact % of revenue from those ancillary services.

I do believe it’s an exciting business but for those reasons it’s a no-go for me, personally.

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you guys are on top of it!!!

yes agreed.

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Carvana – interesting in that is that a profitable business ? Or just a great stock that rocketed up. I start with the former and not the other way around. But, the other way round seems to work as well…

  1. Zillow is offering the same service
  2. This model is very capital intensive
  3. Revenue disclosure: booking house sale as revenue is sort of misleading. Gross margin is a better revenue guage
  4. It is most likely all these businesses will be haram, given debt will play a significant part in financing home purchases. The cost of equity would be prohibitive given the margins are only in the 7 to 12%.