There’s plenty of optimism surrounding Opendoor Technologies (NASDAQ: OPEN). Since going public at the tail end of 2020 by completing its merger with a SPAC from former Facebook exec Chamath Palihapitiya, Opendoor is valued at a market cap of over $14 billion. That’s nearly double the value of fellow real estate technologist Redfin (NASDAQ: RDFN), and nearly half the value of real estate tech leader Zillow Group (NASDAQ: Z).
And this is still a small company that could have lots of upside remaining in the decade ahead. Opendoor is helping to pioneer a new category in residential real estate, with millions of homes sold every year up for grabs.
But I don’t think Opendoor is the best buy in this emerging market — at this juncture.