Opendoor(OPEN) The Motley Fool·2024-11-25 22:55Core Viewpoint - Opendoor Technologies' shares surged by 14.6% following the news of Scott Bessent's nomination as Treasury Secretary, which is perceived positively by investors due to expectations of economic stability and lower interest rates [1][2]. Group 1: Market Reaction - Treasury yields fell by 3.3% to 4.27% in response to Bessent's nomination, indicating investor confidence that he will help control inflation and narrow the budget deficit [3]. - Falling Treasury yields are beneficial for Opendoor, as the company profits from home-flipping, and lower mortgage rates would positively impact its business model [5]. Group 2: Company Performance - Opendoor has faced challenges since going public in 2020, remaining unprofitable and struggling with excess inventory due to a stagnant housing market [6]. - The company has implemented cost-cutting measures and layoffs to manage its inventory, but it will require a significant decline in mortgage rates and a rebound in home sales to achieve profitability [7].