Earlier quoted context omitted.
Wait, Zillow owns homes?
https://www.zillow.com/marketing/zillow-owned-homes/
That’s a crazy bad idea. Someone who makes money on transactions shouldn’t be taking long or short positions.
Opendoor is cutting 35% of its employees
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Re: Opendoor is cutting 35% of its employees
#22I feel like the amount of subliminal shitposting within an article is increasing as this goes on. What did that sentence about Florida have to do with anything? They are on a statewide lockdown.
TechCrunch is likely seeing declining ad revenues, meaning they need to post more trolly/blight/clickbait-y content to compensate to get more page views.
Re: Opendoor is cutting 35% of its employees
#23All the ibuyer companies won't make it. Nationwide downturn in house prices and all the inventory these companies are holding are underwater. Zillow and Redfin are more than likely done. Zillow maybe holding 60,000 homes. We never learn our lesson. GE was taken out by their financial division and high risk bets.
I don’t think Zillow holds close to 60k homes...
In their last quarter they ended the quarter with 2,700 , they are buying and selling They are still in the testing / ramp phase of this business, I don’t think it will hurt them that much
Re: Opendoor is cutting 35% of its employees
#24All the ibuyer companies won't make it. Nationwide downturn in house prices and all the inventory these companies are holding are underwater. Zillow and Redfin are more than likely done. Zillow maybe holding 60,000 homes. We never learn our lesson. GE was taken out by their financial division and high risk bets.
“ Nationwide downturn in house prices” there’s nothing certain about that happening. Look at 2001. It may.. but all the free money being thrown will prop up prices some. Plus supply in the tank because people aren’t moving.
https://www.calculatedriskblog.com/2018/06/real-house-prices...
Re: Opendoor is cutting 35% of its employees
#25Re: Opendoor is cutting 35% of its employees
#26Earlier quoted context omitted.
> They are on a statewide lockdown. Apparently not. But I agree this remark is out of place.
What makes you think they aren't? The statewide lockdown was announced a while ago, and as far as I know, has not been lifted.
The fact that they deemed live pro wrestling an "essential business" is one thing that shows they might not be taking their statewide "lockdown" seriously.
Re: Opendoor is cutting 35% of its employees
#27All the ibuyer companies won't make it. Nationwide downturn in house prices and all the inventory these companies are holding are underwater. Zillow and Redfin are more than likely done. Zillow maybe holding 60,000 homes. We never learn our lesson. GE was taken out by their financial division and high risk bets.
“ Nationwide downturn in house prices” there’s nothing certain about that happening. Look at 2001. It may.. but all the free money being thrown will prop up prices some. Plus supply in the tank because people aren’t moving. https://www.calculatedriskblog.com/2018/06/real-house-prices...
>Plus supply in the tank because people aren’t moving.
One of the complicated things about housing prices is that people do (mostly) need to live somewhere. Yes, there are homeless and yes people move back in with family etc. But, for the most part, the people getting laid off from, say, Bay Area tech jobs aren't immediately picking up and moving to some cheap city in the Midwest. Especially if they already own a house.
Re: Opendoor is cutting 35% of its employees
#28I keep seeing "SoftBank-backed ..." in TC headlines, but rarely other funds. Is it just fashionable to bash SoftBank?
Yes it is. They backed a couple hilariously bad bets in a big, public way, and people like feeling smarter than rich strangers. I would be curious, though, if there are other funds with similar scope and track records to Vision 1 that have just managed to skate under public scrutiny thus far.
It's not just a couple, and the way they did it is notable. They over-capitalized companies in key sectors like logistics, transportation, robotics, etc.
They pumped in hundreds of millions of dollars per round of funding even when the company might not have needed it (with the threat being "we'll heavily fund your competition if you don't take our deal). Their thesis was to monopolize a few sectors with sheer money and scale.
We're now seeing the effects of that strategy play out.
Re: Opendoor is cutting 35% of its employees
#29Companies with marginal business models are going to get slaughtered in the next year. Carvana, Opendoor are probably the most well known of these companies.
Opendoor's business model was super questionable from the get-go: who's going to sell you their home for less than market value? How can you then do something to turn that around and profit without basically turning the company into a giant high-risk flipping enterprise?