Opendoor (OPEN) Stock: CEO Backs Trump’s Institutional Homebuyer Ban Proposal

TLDR

• Opendoor CEO Kaz Nejatian supports Trump’s proposed ban on institutional investors buying single-family homes
• Trump announced plans to ban large institutional investors from purchasing single-family homes via Truth Social
• Opendoor shares dropped 10% following Trump’s announcement on January 7, 2026
• Nejatian clarified that Opendoor is not an institutional investor and doesn’t hold homes long-term
• Trump plans to discuss additional housing affordability proposals at Davos in two weeks

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Opendoor Technologies took a 10% hit on Tuesday after President Donald Trump announced his intention to ban institutional investors from buying single-family homes. The real estate stock closed at $6.12 per share, down from its opening price.

Opendoor Technologies Inc., OPEN

The president said he would call on Congress to codify the ban into law. He also promised to unveil more housing affordability proposals during a speech at Davos in two weeks.

The distinction matters for Opendoor’s business operations. The company operates as an iBuyer, making instant cash offers on homes, fixing them up, and relisting them on its marketplace.

Opendoor’s Business Model Under Scrutiny

Real estate stocks broadly declined following Trump’s announcement. The market reaction suggests investor concern about potential regulatory changes affecting the housing sector.

Opendoor has been recovering from difficult market conditions. The stock hit an all-time low of $0.51 per share in May 2024 when high mortgage rates throttled growth.

The company has since rallied to nearly $7 per share before Tuesday’s drop. That represents a gain of more than 1,200% from its all-time low.

However, the stock remains more than 80% below its all-time high of $35.88 from February 2021. Market capitalization currently sits at $5.8 billion.

Opendoor’s revenue has declined over recent years as interest rates rose. The company posted $15.6 billion in revenue in 2022 but only $5.2 billion in 2024.

Leadership Changes and Future Plans

The company recently brought in new leadership to turn things around. Last September, Opendoor hired Kaz Nejatian as CEO, who previously served as COO of Shopify.

Co-founders Keith Rabois and Eric Wu also returned to the board. Quantitative trading firm Jane Street disclosed a 5.9% stake in the company shortly after these changes.

In December, Opendoor hired Lucas Matheson from Coinbase’s Canadian operations as president. The company also promoted Christy Schwartz from interim CFO to permanent CFO.

Opendoor is expanding beyond its core iBuying business. The company launched Opendoor Exclusives, a marketplace connecting sellers directly to buyers without requiring Opendoor to purchase properties first.

The company is also upgrading its AI algorithms for property pricing. It has signed more partnerships with home builders, real estate platforms like Zillow and Redfin, and agents.

Analysts expect Opendoor’s revenue to grow 15% to $4.5 billion in 2026. For 2027, projections show 41% growth to $6.8 billion as mortgage rates potentially decline.

The company aims to achieve breakeven adjusted net income by the end of 2026. Analysts predict adjusted EBITDA will turn positive for the full year in 2027 as the housing market recovers and the Federal Reserve continues rate adjustments.

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