Is Opendoor Quietly Becoming Real Estate's AI Commerce Engine?

Opendoor Technologies Inc. OPEN is no longer just a home-flipping platform — it’s becoming an AI-driven marketplace reshaping how homes are sold and marketed. In its second quarter of 2025, the company reported $1.6 billion in revenues and its first quarter of adjusted EBITDA profitability since 2022, signaling that its long-term technology bets may finally be paying off.

At the heart of Opendoor’s reinvention is its AI-powered pricing intelligence engine, trained on millions of photos, agent notes and home visit records. This proprietary data now fuels the company’s “cash offer” and “Cash Plus” hybrid models, enabling faster, more accurate valuations and risk-adjusted returns. The company’s new Key Agent app extends this ecosystem by allowing real estate agents to conduct in-home assessments that continuously feed back into Opendoor’s data flywheel — improving predictive accuracy and conversion rates that are already up 2x from traditional flows.

The recent appointment of Kaz Nejatian, Shopify’s former COO, further cements the company’s shift into a commerce-grade technology enterprise. Nejatian, described as an “AI-native executive,” aims to make buying or selling a home “as simple, fast, and certain as any digital transaction”.

While high mortgage rates still pressure housing activity, Opendoor’s transformation into an AI-powered commerce platform could ultimately redefine the economics of real estate — and position the company as the first true digital operating system for home transactions.

How Opendoor Stacks Up Against Zillow and Compass in the AI Race

As Opendoor accelerates its AI-first pivot, competition from Zillow Group ZG and Compass Inc. COMP is intensifying. Both Zillow and Compass are embedding artificial intelligence into real estate operations, though their strategies diverge from Opendoor’s commerce-style engine. 

Zillow continues to refine its AI-driven search, advertising, and pricing algorithms, using predictive data to personalize listings and improve monetization. Compass, meanwhile, integrates AI tools into its agent platform to streamline workflow, lead generation, and pricing recommendations across its luxury brokerage network. 

Yet neither Zillow nor Compass matches the scale or transactional automation of Opendoor’s AI-powered valuation system. Zillow’s earlier retreat from iBuying underscores the operational complexity that Compass is still navigating in its tech-enabled brokerage model. Opendoor’s deeper data ecosystem and end-to-end transaction automation could give it a decisive edge over Zillow and Compass in transforming real estate into a true digital commerce category.

OPEN Stock's Price Performance, Valuation & Estimates

Shares of Opendoor have surged 347.3% over the past three months, outperforming the industry, broader sector and the S&P 500 index.

OPEN’s 3-Month Price Performance

From a valuation standpoint, OPEN trades at a forward price-to-sales (P/S) multiple of 1.04, significantly below the industry’s average of 5.45X.
 

The Zacks Consensus Estimate for OPEN’s 2025 loss per share has remained unchanged at 24 cents in the past 60 days. However, the estimated figure indicates a narrower loss from the year-ago loss of 37 cents per share.

OPEN stock currently has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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