• Nextdoor stock rallied after hedge fund manager and noted stock picker, Eric Jackson, disclosed a bullish call.
• Jackson believes Nextdoor has high growth potential, given its utility, highly engaged user base, and new AI features.
• Earlier this year, Jackson’s bullish comments sparked a multi-fold rally in Opendoor stock.

Eric Jackson, the hedge-fund manager who helped ignite Opendoor’s surge and has since earned a reputation as a meme-stock whisperer, seems to have found another “door” to potentially fuel a fresh rally. His latest X thread touts Nextdoor Holdings Inc. as a significant market opportunity and appears to have jolted the once-sleepy stock out of a long slumber.

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Sharp Rally After Jackson’s Call

Shares of the neighborhood social media platform rose nearly 26% on Wednesday, their best day ever, to $2.53. The stock was up as much as 25% in the premarket session on Thursday, with retail investor sentiment hitting the nearly top end of the meter.

The Stocktwits sentiment for NXDR shifted to ‘extremely bullish’ (95/100) as of early Thursday, up from ‘bullish’ the previous day. The message volume rose by over 5,500% in the past 24 hours, with several users adding the ticker to their watchlists.

Jackson’s Thesis

Jackson said Nextdoor is “the most mispriced agentic-AI platform of the 2020s,” and the market is massively underappreciating its strategic blend of “identity, trust, proximity, and AI.”

Nextdoor allows users to connect with nearby residents to share local updates, seek recommendations, buy and sell items, report issues, and coordinate community activities. It claims to have 100 million users. The company went public through its 2021 merger with a special-purpose acquisition company (SPAC).

Describing the framework behind his notable bets, namely, Opendoor, Carvana, and Palantir, Jackson argued that Nextdoor has significant growth potential as it brings AI to its high-quality, highly engaged user base. “Identity + proximity + trust = the rarest asset in the AI century. You couldn’t replicate it with $10B and a thousand engineers.” 

Jackson’s main argument is centered on the usefulness of Nextdoor, calling it the “neighbourhood operating system.”

Nextdoor Fundamentals

Nextdoor’s revenue last year grew 13.3% to $274.3 million, while it booked a core operating loss of $18.2 million. It has posted steady single-digit revenue growth in the past quarters, which included a significant platform revamp.

In July, Nextdoor launched a sweeping redesign, which the management described as a "refounding moment," aiming to transition from a complaints-heavy social feed into an essential utility. 

A Sweeping Revamp

The revamp introduced a map-centric interface organized around three areas: Alerts, News, and Ask. The Alerts feature added a dynamic map for real-time safety updates, such as power outages, powered by partnerships with local agencies. The News section integrated verified headlines from over 3,500 local publishers directly into the feed. 

Perhaps the most significant addition was Ask, an AI tool that mines the platform’s 14 years of neighborhood data to provide summarized recommendations for local services and businesses.

Despite the changes, the company’s stock has been in doldrums. From a high of $13.50 in November 2021, it has traded below $2 for the better part of this year. As of the last close, Nextdoor’s market capitalization was $992 million, which is one-sixth of Opendoor’s valuation.

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