Opendoor

Opendoor was Chamath Palihapitiya's second SPAC (IPOB), merging in December 2020. The company pioneered 'iBuying' — using algorithms to make instant cash offers on homes, renovating them, and reselling. The pitch was compelling: disrupt the slow, painful home-selling process with technology.

The stock surged to nearly $40 as investors bet on the massive US housing market ($36 trillion in value). Revenue was real and growing fast — Opendoor was buying and selling thousands of homes per quarter, eventually reaching over $15 billion in annual revenue at peak.

But iBuying has razor-thin margins and enormous risk. When the housing market shifted in 2022 due to rising interest rates, Opendoor was caught holding thousands of homes purchased at peak prices. The company lost over $1.4 billion in 2022 alone as home values declined and it was forced to sell at losses.

Opendoor survived the housing downturn — unlike competitor Zillow Offers, which shut down entirely — but the stock never recovered. The company significantly reduced its purchasing volume to manage risk, and its market cap fell from $25 billion to around $2.5 billion. Chamath, predictably, had sold his stake well before the collapse. Opendoor remains a functioning business but trades far below its SPAC-era valuation, making it a zombie in the SPAC graveyard.