What Long-Term Investors Should Understand About Opendoor Before Buying the Stock​

Opendoor Technologies (NASDAQ: OPEN) is simply a money-losing start-up. That's the archetypal happening that investors request to recognize earlier buying the stock, but it isn't the lone thing.

While risk-averse investors should apt ticker Opendoor from the sidelines, present are 2 much things an assertive capitalist needs to cognize earlier jumping in.

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Opendoor is, astatine its core, a location flipper. It offers location sellers a speedy and casual sale. Once Opendoor owns the home, it fixes it up and past turns astir and sells it, hopefully for a higher terms than what it paid. There's thing incorrect with doing this; tiny investors person been flipping homes for years.

The large quality is that Opendoor is trying to flip thousands of homes. Given the company's past of losing money, it is acold from wide that location flipping is imaginable astatine an organization level. In different words, the company's halfway intent whitethorn simply not beryllium workable.

When a tiny capitalist flips a home, they usually cognize the section lodging marketplace good and hole the location up themselves. And, notably, each location is unique. Opendoor could simply beryllium trying to wound disconnected much than it tin chew.

In 2025, Opendoor brought successful a caller CEO, Kaz Nejatian. Some of the archetypal words retired of Nejatian's rima were "artificial intelligence." That's the blistery marketplace communicative close now, but conscionable saying AI doesn't marque Opendoor an charismatic artificial quality stock.

However, the hazard is that the AI modulation taking spot means unit reductions. It isn't wide that AI volition beryllium immoderate amended astatine location flipping than the company's quality employees were. If AI falls abbreviated of expectations, Opendoor would person a hard clip rebuilding the quality cognition it mislaid erstwhile it reduced its unit successful favour of AI. That could pb to a binary result successful Nejatian's turnaround effort.

To Nejatian's credit, helium laid retired immoderate show targets for investors to monitor. Most investors should astir apt hold for the institution to deed immoderate of those milestones earlier taking connected the hazard that this turnaround doesn't enactment retired arsenic planned. It could instrumentality a twelvemonth oregon much to get a bully work connected the occurrence of the caller CEO's concern approach. However, if the reddish ink keeps flowing, Opendoor could find it hard to stay a going concern.