Chamath Palihapitiya and Social Capital are bullish on Opendoor, the e-Buying company that their second special purpose acquisition company (SPAC) $IPOB will take public in Q4 of 2020. In this video, we walk through the investor memo that Chamath shared on his Twitter profile to announce the merits of the deal. We'll also watch parts of his Squawk Box announcement of the pending merger on CNBC to hear it all from the man himself.

Opendoor is the leader in the offers market, wherein a company makes an offer to a homeowner to purchase their house, fixes it up, and sells it to another homebuyer on the market.

Opendoor makes its money from the spread between how much they pay for a house and what they sell it at minus expenses. The market is $1.6 trillion residential real estate market. Opendoor operates in 21 markets, says it sold more than 18,000 homes in 2019. It also provides services, such as a mortgage product, home repair and home warranty that users can purchase.

Opendoor had revenues of $4.7B in 2019. They project revenues of $9.8B by 2023! Opendoor ranked No. 35 on last year’s CNBC Disruptor 50 list.

The Fed said in August that they plan to hold interest rates at near 0% for a long time in encourage economic growth. This is great news for Opendoor who makes its money when it sells homes. The lower interest rates are, the more people will be able to afford in a mortgage to buy their house. That means more customers for Opendoor to flip houses to. It also means more customers for Opendoor to sell mortgages, home repair, and home warranty services to.

Timestamps
Intro 0:00
Chamath's Investor Memo 5:11
Segway to Interview 16:06
Chamath's Announcement on CNBC 16:26
Conclusion 22:09


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The article for this video:   / 480ad8544762  

💡 Sources:
- https://www.opendoor.com/
- Chamath's investor memo:   / 1305857946904133632  
- The announcement on CNBC: https://www.cnbc.com/amp/2020/09/15/p...
- Social Capital's Thesis:   / 1  
- Presentation: https://www.opendoor.com/w/wp-content...
- Buy homes on Opendoor https://www.opendoor.com/w/homes

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DISCLAIMER: This and all of my videos are for entertainment purposes only. My statements are my opinions and should not be accepted as financial advice.