A $13.5 Billion SPAC Sensation Will Buy Your House

Opendoor buys houses, refurbishes them and sells them a few months later. Essentially, it flips homes. The company rejects that description, however, and would prefer you called it an “iBuyer” — a technology-enabled, one-stop shop for homeowners who want to sell quickly with as little friction as possible. You enter your home address on the website, and some details about the state of the property and its features, and it makes you an offer.

In fairness, Opendoor makes most of its money from charging the seller a 6%-9% levy on the gross purchase price — not from buying low and selling high. (In the U.S. someone selling a house the old-fashioned way might pay 5%-6% in broker fees.) It sold almost 19,000 homes last year in 21 U.S. cities, although Phoenix, Dallas, Atlanta and Raleigh account for almost half of its revenue. Rival real-estate websites such as Zillow Group Inc. have also jumped aboard the iBuying bandwagon.

This is a very good moment to go public. America’s housing market is booming, thanks to rock-bottom interest rates and a pandemic-induced urge for more space and bigger gardens. Covid-19 infection concerns also validate Opendoor’s business model. Sellers who accept its algorithm-generated cash offer avoid human house-hunters traipsing through their living rooms. 

So far, investors have been willing to overlook Opendoor’s $900 million or so of losses since it was founded in 2014. They’ve also accepted that revenue may halve this year because the company paused the buying of properties during the pandemic and laid off a third of its staff. While it has restarted home purchases, revenue isn’t expected to recover until 2022. That’s an odd look for a high-growth company. 

When the Vision Fund last invested in 2019, it valued Opendoor at just $3.8 billion. This year, Social Capital Hedosophia Holdings Corp II, a SPAC created by former Facebook Inc. executive Chamath Palihapitiya, decided it was worth $4.8 billion (excluding its cash). Since announcing the merger with Opendoor in September, the price of shares in Palihapitiya’s SPAC has more than doubled. This means Opendoor’s enterprise value has risen to about $13.5 billion, even before the transaction is complete.(2)

A serial SPAC launcher, Palihapitiya thinks Opendoor’s valuation could rise tenfold. “This to me feels like Bitcoin in 2012, Amazon in 2015, Tesla in 2016, Virgin [Galactic] last year,” he said last month. Palihapitiya’s first SPAC took Richard Branson’s space-travel company public in 2019.

Palihapitiya and his investment partner Ian Osborne have put more of their own money — about $169 million — into Opendoor than is customary in a SPAC deal. At the current share price, they’re set to achieve a spectacular four-times return on that invested capital.(1)

It’s hard to see how the company’s fundamentals justify such returns. Opendoor said the SPAC transaction valued it at a 1x multiple of its revenue (the value of the houses it sells, plus any ancillary services). But once you deduct the cost of acquiring and renovating the houses, the company generated just $300 million

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A $13 Billion SoftBank-Backed SPAC That Will Buy Your House

Opendoor buys houses, refurbishes them and sells them a few months later. Essentially, it flips homes. The company rejects that description, however, and would prefer you called it an “iBuyer” — a technology-enabled, one-stop shop for homeowners who want to sell quickly with as little friction as possible. You enter your home address on the website, and some details about the state of the property and its features, and it makes you an offer.

In fairness, Opendoor makes most of its money from charging the seller a 6%-9% levy on the gross purchase price — not from buying low and selling high. (In the U.S. someone selling a house the old-fashioned way might pay 5%-6% in broker fees.) It sold almost 19,000 homes last year in 21 U.S. cities, although Phoenix, Dallas, Atlanta and Raleigh account for almost half of its revenue. Rival real-estate websites such as Zillow Group Inc. have also jumped aboard the iBuying bandwagon.

This is a very good moment to go public. America’s housing market is booming, thanks to rock-bottom interest rates and a pandemic-induced urge for more space and bigger gardens. Covid-19 infection concerns also validate Opendoor’s business model. Sellers who accept its algorithm-generated cash offer avoid human house-hunters traipsing through their living rooms. 

So far, investors have been willing to overlook Opendoor’s $900 million or so of losses since it was founded in 2014. They’ve also accepted that revenue may halve this year because the company paused the buying of properties during the pandemic and laid off a third of its staff. While it has restarted home purchases, revenue isn’t expected to recover until 2022. That’s an odd look for a high-growth company. 

When the Vision Fund last invested in 2019, it valued Opendoor at just $3.8 billion. This year, Social Capital Hedosophia Holdings Corp II, a SPAC created by former Facebook Inc. executive Chamath Palihapitiya, decided it was worth $4.8 billion (excluding its cash). Since announcing the merger with Opendoor in September, the price of shares in Palihapitiya’s SPAC has more than doubled. This means Opendoor’s enterprise value has risen to about $13.5 billion, even before the transaction is complete.(2)

A serial SPAC launcher, Palihapitiya thinks Opendoor’s valuation could rise tenfold. “This to me feels like Bitcoin in 2012, Amazon in 2015, Tesla in 2016, Virgin [Galactic] last year,” he said last month. Palihapitiya’s first SPAC took Richard Branson’s space-travel company public in 2019.

Palihapitiya and his investment partner Ian Osborne have put more of their own money — about $169 million — into Opendoor than is customary in a SPAC deal. At the current share price, they’re set to achieve a spectacular four-times return on that invested capital.(1)

It’s hard to see how the company’s fundamentals justify such returns. Opendoor said the SPAC transaction valued it at a 1x multiple of its revenue (the value of the houses it sells, plus any ancillary services). But once you deduct the cost of acquiring and renovating the houses, the company generated just $300 million

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DIY Home Improvement Market Projected to Reach $1137.57 Billion by 2025, at a CAGR of 4.8%

The MarketWatch News Department was not involved in the creation of this content.

Sep 08, 2020 (AB Digital via COMTEX) —
Home Improvement Market is valued at USD 819.53 Billion in 2018 and expected to reach USD 1137.57 Billion by 2025 with the CAGR of 4.8% over the forecast period.

Increasing development of the construction industry, increasing population, reducing living space, adoption of innovative interior & exterior like garden, smart kitchens etc.  are some  key impacting factors deriving the growth of the global DIY home improvement market. 

Get Sample Report: @ https://industrystatsreport.com/Request/Sample?ResearchPostId=12886&RequestType=Sample

DIY home improvement is a service refers to building projects that alter the structure of an existing home. It is used in renovation including improvements to lawns, gardens and outdoor structures such as gazebos and garages. It also incorporates maintenance, repair and general servicing tasks. End use of DIY home improvement is in residential and nonresidential buildings. Do-It-Yourself (D-I-Y) projects have become much easier for the average person. DIY home improvement  are very popular which helps to turn marginal areas into livable spaces such as turning basements into recrooms, home theaters, or home offices – or attics into spare bedrooms. Home improvement can consist of projects that upgrade an existing home interior such as electrical and plumbing, exterior such as masonry, concrete, siding, roofing and other improvements to the property such as garden work or garage maintenance.

DIY home improvement market report is segmented on the basis of product type, distribution channel, end-user and by regional & country level. Based upon product type, DIY home improvement market is classified into lumber and landscape management, décor and indoor garden, kitchen, painting and wallpaper, tools and hardware, building materials, lighting, plumbing and equipment, flooring and electrical work. Based upon distribution channel, DIY home improvement market is classified into DIY shops, online and other. Based upon end user, DIY home improvement market is classified into residential, commercial and others.

The regions covered in this DIY home improvement market report are North America, Europe, Asia-Pacific and Rest of the World. On the basis of country level, market is sub divided into U.S., Mexico, Canada, U.K., France, Germany, Italy, China, Japan, India, South East Asia, GCC, Africa, etc.

 

 Key Players DIY Home Improvement Market

  DIY home improvement market report covers top kryplayers  are,

Dow Building Solutions

Ferguson Enterprises

Hanley Wood, LLC

DuPont Building Innovations

The Tapco Group

Kingfisher plc

The Home Depot

JELD-WEN

Kohler Co.

Lutron Electronics

Masco Corporation

Harvey Building Products

Henkel Corporation

Pella Corporation

ABC Supply

 

 DIY Home Improvement Market Dynamics –

Increasing development of the construction industry, reducing living space, adoption of innovative interior & exterior like garden, smart kitchens etc. these are some key impacting factors deriving the growth of the global DIY home improvement market. According to estimates there was 2% increases (USD44 billion) in U.S. healthcare construction spending in 2019. Moreover, rise in investment in the global construction sector, specifically in the residential and commercial sector, growing population and urbanization, these factors will increases the DIY home

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Global Cloud Kitchen Market to Reach $71.4 Billion by 2027, Says Allied Market Research

The MarketWatch News Department was not involved in the creation of this content.

Portland,OR, Sep 22, 2020 (GLOBE NEWSWIRE via COMTEX) —
Portland,OR, Sept. 22, 2020 (GLOBE NEWSWIRE) — According to the report published by Allied Market Research, the global cloud kitchen market obtained $43.1 billion in 2019, and is anticipated to reach $71.4 billion by 2027, registering a CAGR of 12.0% from 2021 to 2027. The report offers an in-depth analysis of changing market dynamics, top winning strategies, key investment pockets, major segments, Porter’s Five Forces, and competitive scenario.

Increase in demand for online food delivery, surge in demand for international cuisine, and implementation of tech-savy ordering system across the globe propel the growth of the global cloud kitchen market. On the other hand, surge in health issues due to consumption of fast food and competition from fine dining and quick service restaurant (QSRs) restrain the growth to certain extent. Nevertheless, rise in internet penetration and increase in adoption of social media marketing are anticipated to usher a number of opportunities in the near future.

Get detailed COVID-19 impact analysis on the Cloud Kitchen [email protected] https://www.alliedmarketresearch.com/request-for-customization/6773?reqfor=covid

COVID-19 Scenario-

? Due to the global lockdown, most of the hotels and restaurants were closed, which positively impacted the market resulting in elevated demand for cloud kitchen.

? The government bodies in different nations, however, have issued stringent regulations regarding hygiene for the cloud kitchen industry to curb the spread of corona virus. This impacted the growth to a certain extent.

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The cloud kitchen market is segmented into type, product type, nature, and region.

Based on product type, the market is classified into burger/sandwich, pizza/pasta, chicken, seafood, Mexican/Asian food and others. The burger/sandwich segment accounted for nearly one-fourth of the total market share in 2019, and is expected to maintain its dominance in terms of revenue throughout the forecast period. Nevertheless, the seafood segment is expected to manifest the highest CAGR of 15.1% from 2021 to 2027.

Based on type, the market is categorized into kitchen, commissary/shared kitchen, and kitchenpods. The independent cloud kitchen segment contributed to the highest market share with around two-thirds of the global market in 2019, and is estimated to maintain its lead during the forecast period. On the other hand, the kitchen pods segment is projected to portray the fastest CAGR of 13.9% from 2021 to 2027.

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Based on region, the market across North America held the lion’s share based on revenue, accounting for more than two-fifths of the market in 2019, and is expected to maintain its dominant position throughout the forecast period. Conversely, the region across Asia-Pacific is projected to register the fastest CAGR of 14.4% from 2021 to 2027. Furthermore, the report also analyzes regions including Europe and LAMEA.

The major market players in the cloud kitchen industry include Keatz, Kitopi, Ghost Kitchen Orlando, Dahmakan, Starbucks (Star Kitchen), Kitchen United, Rebel Foods, DoorDash Kitchen, Zuul Kitchen, and Cloud Kitchen.

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White House announces $11.6 billion aid for Puerto Rico

WASHINGTON (Reuters) – The federal government will award an $11.6 billion aid package to Puerto Rico, focused on the territory’s energy and education systems, to help the island recover from the devastation brought by 2017’s Hurricane Maria, the White House said on Friday.

The Federal Emergency Management Administration (FEMA) will provide $9.6 billion in funding for the Puerto Rico Electrical Power Authority to make replacements, repairs and improvements to equipment and buildings, the White House said.

The federal government will also provide an additional $2 billion grant for Puerto Rico’s Education Department, the White House said.

In a statement announcing the aid, the White House said, “Together, these grants exceed the total Public Assistance funding in any single federally-declared disaster other than Hurricanes Katrina and Sandy.”

U.S. Democratic leader Chuck Schumer accused the Trump administration of “slow walking” aid to the U.S. territory and he would work to ensure that Puerto Rico could build a better energy system.

“I will work with the Puerto Rican community to see that these long overdue and desperately needed funds are put to use in a wise way building the cleaner and more resilient energy grid the island deserves,” Schumer said in a statement.

Puerto Rico was already struggling financially before the deadly hurricane struck three years ago, and filed a form of municipal bankruptcy for the commonwealth in 2017 to restructure about $120 billion of debt and obligations.

Since then, the U.S. commonwealth has been hit by more hurricanes, earthquakes, the coronavirus pandemic and political upheaval, and has been the target of increased federal scrutiny into its use of U.S. aid. A large portion of its financial distress was linked to the territory’s power utility.

Meanwhile, Republicans and Democrats are working to woo Hispanic voters in the Nov. 3 election, where U.S. President Donald Trump, a Republican, is in a tight race against Democrat Joe Biden.

Biden said Trump “has done nothing but assault the dignity of Hispanic families” in a speech on Tuesday in Kissimmee, Florida, where many people settled after fleeing Maria’s devastation.

(Reporting by Lisa Lambert and Makini Brice; Editing by Susan Heavey/Jonathan Oatis and Grant McCool)

Source Article

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Flexible Garden Hosess Market Assures To Achieve $26.12 Billion By 2027 | Grand View Research, Inc – Press Release

Flexible Garden Hosess Market Assures To Achieve $26.12 Billion By 2027 | Grand View Research, Inc

“Grand View Research, Inc. – Market Research And Consulting.”

According to report published by Grand View Research, the global flexible garden hoses market size was valued at USD 1.0 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 4.3% from 2020 to 2027.

The global flexible garden hoses market is anticipated to witness a growth upsurge during the forecast timeframe and is likely to register a CAGR of 4.3%. A flexible garden hose is a well-known and widely accepted tool to replace the work of carrying heavy watering cans for watering purposes. The flexible garden hose can also be used for cleaning vehicles, garden tools, garden furniture, etc. quickly and easily.

Consumer inclination towards nursery activities, especially during the Covid-19 pandemic, is driving demand for gardening supplies like flexible garden hose. In August 2020, Central Garden & Pet announced vendor awards for 2020, which consists of participants from leading companies in the independent garden retailer center market. All these factors are likely to kickoff flexible garden hoses sales during the forecast period.

Browse Details of Report, Please Visit @ https://www.grandviewresearch.com/industry-analysis/flexible-garden-hoses-market

The U.S. flexible garden hoses market size, by product, 2016 - 2027 (USD Million)

Covid-19 Effect:

As the COVID-19 pandemic sets in, an increasingly growing number of people are gaining interest in gardening activities. With the struggle to slow the pandemic crisis leaving most households self-isolated and food-obsessed. Novices have been observed to have a greater inclination for indoor plantation. According to the national garden bureau in March 2020, people were buying curbside from local IGCs, planting a veggie garden, plantation of an herb garden, redesigning the plantings in the front of the house, and create a new indoor display of plants.

Key Takeaways from the report:

  • The medium-duty hoses in terms of revenue dominated the market in 2019, with a share of 45.3%. The growth of this segment can be owed to its flexibility and that is specially designed for lawn care and gardening needs. They are made with tough and weather-resistant vinyl cover for year-round use and a longer product life. These factors are set to drive growth in the coming years.
  • Based on the distribution channel, the offline distribution channel segment accounted for the largest revenue share of more than 78.0% in 2019. The market is driven by the availability of a wide variety of products and numerous brands under one roof.
  • The conventional hoses product segment held the largest share of 62.7% in 2019

  • By performance, the medium-duty hoses segment accounted for the largest share of 45.3% in 2019

  • The offline distribution channel segment was valued at USD 822.8 million in 2019

  • Asia Pacific is expected to witness substantial growth over the forecast period with a revenue-based CAGR of 5.7% from 2020 to 2027.

Global flexible garden hoses market share, by product, 2019 (%)

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Major Players:

  • Craftsman
  • Legacy Manufacturing Co.
  • Water Right Inc.
  • Melnor
  • Gilmour 
  • Teknor Apex Company
  • Briggs & Stratton
  • Terraflex 
  • Swan Products,
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