.
These companies had little to no differentiation from the competition. And then they tried the “AI card” but were bluffing. Same should happen with self-driving car: one would think that self-parking cars would be a standard feature before they try to drive around. But no: let’s sell the complex first instead of the simple!
Choosing the right problem is a huge issue for ai startups/companies. Too small a problem and you won't get funding or break into an industry. Too big an issue and you'll never leave stealth mode. Cars is a good example. Traditional OEMs have the tech to get self parking cars working (even if they suck) so they would never buy from an industry outsider
What you wrote only reinforces my point. Instead of choosing the right problem to solve for the customer (buying/selling homes) Zillow went for a problem in which everyone was making quick money and played the AI card (flipping houses). The same is happening with cars. We can have so much better cars solving customer problems (parking, entering/exiting for people with disabilities/old, simpler controls, etc.). Yet, companies are trying to create a subscription model for “car updates”. Won’t end well!
Neither. They are just poor at managing the assets
Compass = wework. Sham business model.
Saying Compass = WeWork is the same as saying Disney = WeWork. There is literally zero commonality between the company Compass and the company WeWork.
Mate, all you do is buy up real estate agents with huge bonuses. These agents barely use your products. You are paying $ to buy revenue. Which will only sustain until you run out of cash. Then your stick gets diluted because you need more $. Agents realize there is no upside for them to stay with compass. Company crashes. Good luck though mate. Stock has strong potential to be down 30-40% more.
No, it’s a sign of poorly managed companies.
Both?
Any idiot can make money as a real estate company. The housing supply is so artificially limited that you can do literally nothing and make money because people need places to live and there aren’t enough of them. How Zillow managed to fuck it up is completely beyond me. The lesson we should take is we need more housing. Housing shouldn’t be something that the rich gamble around, it’s a basic need, not an investment opportunity.
Housing is the reservoir for printed money.
If so why is compass’ stock price doing so badly?
Opendoor seems to be doing fine
“Seems”