Opendoor Shares Surge 5% Following Trump's $200 Billion Mortgage Buyback Announcement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 11 2026
0mins
Source: Fool
- Stock Price Rebound: Following Trump's announcement on social media regarding a $200 billion mortgage securities buyback, Opendoor's shares surged approximately 5% on the day, indicating a resurgence of optimism in the real estate sector.
- Market Reaction: This initiative aims to lower interest rates, with Fannie Mae and Freddie Mac participating, which is expected to further stimulate the housing market, benefiting Opendoor as a key player in the industry.
- Future Outlook: The Trump administration has between 30 and 50 additional plans to boost housing demand, with more announcements expected in the coming weeks, potentially driving further gains for Opendoor and other housing stocks, creating a new meme stock wave.
- Investor Caution: While Opendoor's stock may rise due to market sentiment in the short term, analysts project the company will continue to report net losses through 2027, prompting investors to carefully assess its long-term value.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy OPEN?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on OPEN
Wall Street analysts forecast OPEN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for OPEN is 4.35 USD with a low forecast of 1.40 USD and a high forecast of 8.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
1 Buy
2 Hold
2 Sell
Hold
Current: 5.810
Low
1.40
Averages
4.35
High
8.00
Current: 5.810
Low
1.40
Averages
4.35
High
8.00
About OPEN
Opendoor Technologies Inc. is an e-commerce platform for residential real estate transactions. By leveraging software, data science, product design and operations, the Company is engaged in building a technology platform for residential real estate that offers buyers and sellers a digital, on-demand experience. Its product offerings include Sell to Opendoor, List with Opendoor and Opendoor Marketplace. Sell to Opendoor enables sellers to utilize its core product offering to sell their home directly to it, and it resells the home to a home buyer. By selling to Opendoor, homeowners can avoid the stress of open houses, home repair coordination, overlapping mortgages, and the uncertainty that can come with listing a home on the open market. Its capital-light marketplace offering connects home sellers with both institutional and retail buyers, facilitating transactions without Opendoor taking ownership of the home. Its listing product is available in nearly all Opendoor markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Retail Investor Influence Proves Resilient and Expanding
- Increased Retail Participation: According to BlackRock, individual investor participation in U.S. equities has risen to nearly 20% of daily trading volume, a significant increase from low single digits pre-pandemic, highlighting the growing importance of retail investors in the market.
- Record Inflows: JPMorgan reports that retail inflows surged nearly 60% in 2025 compared to the previous year, exceeding the previous peak set in 2021 by 17%, indicating sustained activity and influence of retail investors in the market.
- Changing Market Dynamics: The collective actions of retail investors have prompted hedge funds to adjust strategies by reducing short positions and investing in tools that track retail sentiment, reflecting a widespread recognition of retail's market impact.
- Wealth Transfer Trend: An estimated $120 trillion will be inherited by millennials and Gen Z over the next 20 years, suggesting that retail participation could expand significantly, driving profound changes in market structure.
Continue Reading
Opendoor Faces Structural Challenges Amid Market Volatility
- Stock Volatility: Opendoor's stock surged 264% in 2025, but it hit a record low of $0.51 in June before skyrocketing over 2000% to $10.87, illustrating extreme market sentiment fluctuations driven by social media.
- Poor Sales Performance: In the first three quarters of 2025, Opendoor sold 9,813 homes generating $3.6 billion in revenue, but only acquired 6,535 homes, indicating a deliberate inventory reduction amid tough market conditions, with revenue expected to shrink further in early 2026.
- Ongoing Losses: Opendoor reported a net loss of $204 million in the first three quarters of 2025, and even after excluding one-off and non-cash expenses, the adjusted loss was still $133 million, highlighting significant challenges to profitability.
- New CEO's Transformation Plan: New CEO Kaz Nejatian aims to leverage artificial intelligence to accelerate home sales, intending to boost sales volume and market share; however, skepticism remains regarding the feasibility of this strategy, especially given the failures of predecessors like Zillow.
Continue Reading