Better Buy: Opendoor Technologies vs. Amazon
When Opendoor (NASDAQ: OPEN) went public on Dec. 21, 2020, many investors hailed it as the "Amazon (NASDAQ: AMZN) of real estate" because its online marketplace streamlined the home buying process by making instant cash offers for homes, repairing the properties, and relisting them for sale. About 90% of the deals on its platform were completed without real estate agents -- its buyers simply place bids on its marketplace instead of directly haggling with the sellers.
But since its market debut via a merger with a special purpose acquisition company (SPAC), Opendoor's stock has lost nearly 90% of its value. Amazon's stock only declined 14% during the same period. Let's see why the "Amazon of houses" underperformed the actual Amazon by such a wide margin, and if it will remain the weaker investment.
Image source: Getty Images.
Source Fool.com
