As WeWork’s pre-IPO valuation tumbles, some analysts have called into question the sky-high valuations of Opendoor and Compass, two of SoftBank’s other major real estate investments. All three companies are unprofitable and have fueled their rapid growth by spending billions of dollars of investment capital.
If Wall Street questions Opendoor’s and Compass’ path to profitability, the two companies may be forced to dramatically change their business models.