On January 7, 2026, the U.S. housing and financial markets were jolted by a pair of blockbuster announcements, each rippling across Wall Street and Main Street alike. President Donald Trump’s surprise declaration that he would move to ban institutional investors from buying single-family homes sent shockwaves through the real estate sector, while GameStop, the original meme stock darling, made headlines with a radical new compensation plan for its CEO, Ryan Cohen, tying his pay entirely to the company’s future performance.
Let’s start with the political earthquake. According to CNBC and other major outlets, President Trump took to his social media platform, Truth Social, to unveil his intention to bar large institutional investors—think private equity giants, real estate investment trusts, and similar firms—from purchasing single-family homes. He argued that corporate ownership had driven up home prices and put the dream of homeownership out of reach for many Americans, especially younger generations. "For a very long time, buying and owning a home was considered the pinnacle of the American Dream. It was the reward for working hard, and doing the right thing, but now, because of the Record High Inflation caused by Joe Biden and the Democrats in Congress, that American Dream is increasingly out of reach for far too many people, especially younger Americans," Trump wrote.
He elaborated, "It is for that reason, and much more, that I am immediately taking steps to ban large institutional investors from buying more single-family homes, and I will be calling on Congress to codify it. People live in homes, not corporations." The former president’s rhetoric struck a chord with many who have watched housing prices soar and supply tighten in recent years, but it also sent institutional investors scrambling.
The market’s reaction was swift and severe. Shares of Blackstone Inc., the world’s largest alternative-asset manager, tumbled as much as 9.3% before trimming losses to close down nearly 6%, according to Bloomberg. Invitation Homes, the nation’s biggest single-family rental company, also fell 6%. Apollo Global Management dropped more than 5%. The S&P 500 and Dow Jones Industrial Average both finished the day lower, with Blackstone notably underperforming the broader market, ending a three-day winning streak.
Blackstone, a behemoth in the asset management world with $1.242 trillion in assets under management as of September 2025, has spent billions acquiring real estate companies in recent years. The firm’s portfolio includes over 230,000 apartment units, making it the largest private-equity owner of apartments in the U.S., according to the Private Equity Stakeholder Project. Despite its size and robust financial health—$11.38 billion in revenue, a 23.8% net margin, and a 33.9% return on equity—the threat of regulatory change targeting its real estate strategy rattled investors. Blackstone’s stock closed at $153.59, down 5.57% on the day, reflecting sector-specific risks and broader market volatility.
Trump’s announcement didn’t come with policy details, leaving open questions about how such a ban would be implemented. However, he promised to outline further housing and affordability proposals at the upcoming World Economic Forum in Davos. In a sign that the idea has political legs, Senator Bernie Moreno, a Republican from Ohio, announced plans to introduce legislation to restrict large investors’ ability to buy single-family homes. The issue of housing affordability is likely to remain front and center as the median existing single-family home price sits at $426,800, down slightly from its summer 2025 peak, while mortgage rates hover at 6.19%.
Market analysts, meanwhile, are taking a cautious view. Blackstone’s valuation remains lofty, with a price-to-earnings ratio of 43.8 and a price-to-book ratio of 14.3. Technical indicators suggest the stock is nearing overbought territory, and its beta of 1.92 points to high volatility. Still, financial health metrics like a Piotroski F-Score of 7 and a Beneish M-Score of -2.42 indicate a strong underlying business with a low risk of earnings manipulation. The company’s 1-year earnings growth of 20.3% offers a glimmer of optimism, even as 3-year growth remains negative at -23.6%.
While the real estate sector was reeling, GameStop was making waves of its own in the financial world. The company announced a bold new long-term performance package for Chairman and CEO Ryan Cohen, a move that immediately sent its shares higher in premarket trading. According to Mr. Blue Sky and GameStop’s own press release, Cohen’s compensation is now entirely "at-risk"—he receives no guaranteed salary, no cash bonuses, and no stock that vests simply over time. Instead, his pay is tied solely to GameStop’s market value and cumulative earnings before interest, taxes, depreciation, and amortization (EBITDA), starting from the first quarter of 2026.
The structure of the package is eye-catching: Cohen would receive options to purchase 171.5 million shares at $20.66 each, but only if GameStop meets a series of escalating market cap and EBITDA milestones. The first tranche vests if the company’s market cap surpasses $20 billion and it generates $2 billion in cumulative EBITDA under Cohen’s leadership. The hurdles get steeper from there, with nine total tranches culminating at a $100 billion market cap and $10 billion in EBITDA. For context, GameStop’s market cap has only ever exceeded $20 billion during the meme stock mania of 2021, and it took the retailer a decade to generate its latest $2 billion in cumulative EBITDA.
Should Cohen guide GameStop to the highest threshold, his options could be worth up to $24 billion after accounting for dilution—an astronomical sum, but one that depends entirely on the company’s future performance. As the company noted, “Under the award, Mr. Cohen receives no guaranteed pay — no salary, no cash bonuses, and no stock that vests simply over time. Instead, his compensation is entirely ‘at-risk,’ meaning he will only be paid if the Company achieves significant market and operational goals.” The plan is subject to shareholder approval, with Cohen recusing himself from the vote.
Cohen has already made his mark on GameStop by focusing on collectibles and slashing costs, as well as dabbling in cryptocurrency treasury strategies. The new package is designed to align his financial interests completely with those of shareholders and the company’s operational health. However, some analysts warn that the dilution from such a massive option grant could impact existing shareholders if the ambitious targets are met.
In a day packed with news, the juxtaposition of Trump’s regulatory salvo at Wall Street landlords and GameStop’s high-stakes bet on its CEO highlighted the volatility and unpredictability that define today’s markets. Both stories underscore how quickly fortunes can change—and how closely the fates of companies, investors, and ordinary Americans remain intertwined.
As the dust settles, all eyes will be on Washington and Wall Street to see how these bold moves play out in the coming weeks and months. For now, both the housing market and the world of meme stocks have been put on notice.
