Hedge fund manager George Noble posted a bold criticism of Opendoor Technologies, Inc.’s (NASDAQ:OPEN) latest product rollouts in a social media post on Wednesday night.
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Earlier on Wednesday, Opendoor CEO Kaz Nejatian announced two new benefits: a seven-day home test drive and a 100-day home warranty for buyers who purchase homes from Opendoor.
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Noble's comments about Opendoor's new buyer perks were biting and direct.
"This is a nothing burger IMHO. Very unlikely that many folks will buy a house because of this offering," Noble said.
He went even further and questioned Opendoor's entire business model.
"Again, how does $OPEN intend to make money? What will the new business model be?" Noble added.
Noble's critique is rooted in the long-standing challenges Opendoor faces. Critics argue the iBuyer model is fundamentally unprofitable due to razor-thin margins, volatile property valuations and substantial operational costs.
Opendoor has yet to demonstrate a meaningful path to profitability, Noble said, and has consistently posted annual losses since its inception.
Last week, Noble said Opendoor is a "total clown show" despite its stock rallying over 640% since its all-time low in late June.
He's not alone. Other critics, like Martin Shkreli and Citron Research's Andrew Left, have expressed doubts about Opendoor, calling it "an obvious short" and "a science project in how to burn money.”
Until Opendoor can clarify a profitable, scalable business model, critics are unlikely to be swayed by new feature announcements or product relaunches.
OPEN Price Action: Opendoor stock was up 0.62% at $8.11 on Thursday, according to data from Benzinga Pro.
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