Packy McCormick: evaluation

Transcript context

…Not the pick? Opendoor is the pick and here's why. Because we're in Seattle and Opendoor vanquished a Seattle company. Zillow's iBuying Program, owns the iBuying market themselves now, did $8 billion of revenue last year. I came from Breather where we counted top-line revenue. It's a generous top line. If Softbank knows about this as well, the [...] is just the way we were thinking when we competed with them, and what a wonderful company. Still, $8 billion of homes that Opendoor did last year. They're currently trading at a $5.00 billion market cap. Housing is a multi-trillion dollar market and everybody in the country seems like this past year, learned how awful that process is. I've written about the company, but this is a point that I am taking from Twitter, which is that somebody said it is the worst UI/UX customer experience in the biggest market out there and they have the best solution with iBuying. Sometimes it doesn't have to be hard. I'm treating this more like a venture bet. Two months ago $5 billion was a Series B valuation. I'm treating this as a venture bet that they're the leader in this huge market that is inevitable. They're operationally super sound. They finally turned and adjusted EBITDA profit last year so they can make money on this business. It's thousands and thousands of homes and their biggest competitor has dropped out of the market and Zillow is no longer doing iBuying. This market is theirs to lose. Eric Wu is an absolute monster and it can't go any lower. I am doing what you're not supposed to do, doubling down on my biggest loser. Open, ladies and gentlemen. Excellent. Redfin is still on the market. Another great Seattle company. Are you concerned about them as a competitor?…

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