Opendoor (OPEN) Stock Falls as Trump Targets Institutional Real Estate Investors

TLDR

• Opendoor (OPEN) stock dropped 10% to $6.12 after Trump’s institutional buyer ban announcement
• Trump plans to ban large institutional investors from purchasing single-family homes
• CEO Kaz Nejatian supports Trump’s proposal, says “homes are for families”
• Opendoor clarified it’s not an institutional investor and doesn’t hold homes long-term
• Real estate stocks fell broadly following Trump’s Truth Social announcement on January 7, 2026

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Opendoor Technologies stock fell 10% on Tuesday after President Donald Trump announced plans to ban institutional investors from buying single-family homes. The OPEN stock closed at $6.12 per share.

Opendoor Technologies Inc., OPEN

The president cited high inflation making homeownership difficult for Americans. He plans to call on Congress to codify the ban into law.

Trump will discuss additional housing affordability proposals at Davos in two weeks. Real estate stocks fell broadly following the announcement.

The CEO emphasized homeownership benefits society. “Everything we can do to help people live in homes they own is a good thing. Homes are for families,” he said.

Opendoor Clarifies Business Model

The distinction matters for Opendoor’s operations. The company operates as an iBuyer, making instant cash offers on homes.

Opendoor fixes up properties and relists them on its marketplace. The business model differs from institutional investors who hold homes long-term.

The OPEN stock has been recovering from difficult conditions. Shares hit an all-time low of $0.51 in May 2024.

High mortgage rates had throttled growth. The stock rallied more than 1,200% from that low.

Stock Performance and Future Outlook

Opendoor stock remains more than 80% below its all-time high of $35.88. Market capitalization currently sits at $5.8 billion.

The company brought in new leadership last September. Kaz Nejatian joined as CEO from Shopify.

Co-founders Keith Rabois and Eric Wu returned to the board. Jane Street disclosed a 5.9% stake in the company.

Opendoor is expanding beyond its core iBuying business. The company launched Opendoor Exclusives, connecting sellers directly to buyers.

The company is upgrading AI algorithms for property pricing. It signed partnerships with home builders and platforms like Zillow and Redfin.

Analysts expect Opendoor revenue to grow 15% to $4.5 billion in 2026. Projections show 41% growth to $6.8 billion in 2027.

The company aims for breakeven adjusted net income by end of 2026. Analysts predict adjusted EBITDA will turn positive in 2027 as mortgage rates potentially decline and the housing market recovers.

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