Eric Jackson Could Make Nextdoor the Next Big Meme Stock. Should You Chase the Rally Here?

Core Viewpoint - Nextdoor (NXDR) stock experienced a significant surge of up to 45% after Eric Jackson labeled it as "the most mispriced Agentic-AI platform of the 2020s," indicating strong market interest and potential undervaluation [1][3]. Group 1: Stock Performance - At its peak, Nextdoor stock reached a new year-to-date high but later retraced some gains, currently trading around $2.53 [2]. - Jackson's analysis suggests that NXDR could be valued at $11 based on a 14.6x sales multiple, with a long-term potential of $374 if AI-driven revenue streams develop as anticipated [4]. Group 2: User Base and Monetization - Nextdoor boasts approximately 100 million real users, which Jackson claims is an asset that cannot be easily replicated [3]. - Despite a large user base, Nextdoor has struggled with monetization, as its advertising revenue growth has not kept pace with competitors like Reddit and Meta Platforms [5]. Group 3: Operational Improvements and Challenges - Operational enhancements, such as increased revenue per employee and reduced spam alerts, support upward revisions of estimates for Nextdoor [4]. - However, the company's focus on localized engagement limits scalability compared to global social networks, and muted cash flow generation raises concerns about potential dilution risks if capital raises are needed [6]. Group 4: Market Sentiment - The relative strength index for Nextdoor currently sits at approximately 79, suggesting that the upward momentum may be nearing exhaustion [7].