Opendoor Technologies Inc (OPEN)

[santafe2]

The linked article on Seeking Alpha offers a good overview of OPEN. The author begins by explaining his previous incorrect assumptions regarding the iBuyer market and follows with his new assumptions which I believe are correct.

In Q3 2021 the iBuyer market represented 1.6% of the US housing market and OPEN owns 80% of that market. The current market cap is 1/2 2022 sales estimates. We'll learn more next month when Q4 earnings are released.

A monopoly requires proprietary technology, economies of scale, network effects and brand

I've also posted a comment below that one of the readers made for anyone too busy to read the article.

Another point of synergy that you touch on is that OPEN is gunning to be the de facto market maker/liquidity provider for residential RE in it's operating markets. The combination of being a market maker AND a monopoly is such a huge potential that it is well worth the risk.

The profitability of market makers in general, such as Citadel in equities, is unquestioned, and based on their execution so far, it is highly likely that Eric Wu and his team will position themselves to profit/increase their margins whether the broader real estate market goes up, down, or simply goes sideways.