Opendoor soars as management says Trump’s push to end institutional home-buying wouldn’t hurt the company
Opendoor Technologies shares surged after management clarified that President Trump's proposal to ban institutional home-buying would not negatively impact the company. CEO Kaz Nejatian emphasized that Opendoor is a home-flipper, not a long-term holder, and aims to minimize the time homes are held on its balance sheet. Following a 13% drop in shares, Nejatian's endorsement of the proposal helped stabilize the stock, with Chairman Keith Rabois suggesting the policy could enhance business conversion.
Opendoor Technologies is soaring on Thursday after executives argued that its swoon on Wednesday was an overreaction and misinterpretation by markets.
The online real estate company’s losses deepened yesterday after US President Donald Trump called upon Congress to ban institutional investors from buying single-family homes.
Opendoor is a home-flipper rather than a longer-term holder that buys to rent (à la Invitation Homes or American Homes 4 Rent), and if anything, has been aiming to keep homes on its balance sheet for as short a time as possible under new CEO Kaz Nejatian.
Shares were down as much as 13% on Wednesday, but bounced off those lows around 2:15 p.m. ET after Nejatian took to X to endorse the proposal and are continuing to pare some of those losses today.
Nejatian added, “We're not institutional investors, our job is to help people buy homes. We don't hold the homes!”
Chairman Keith Rabois, for his part, said this policy would only have a positive impact on the company, adding that it could increase conversion.
