Should You Buy Nextdoor Stock for Less Than $3?

Core Viewpoint - Nextdoor is being highlighted as a potential hidden opportunity in the artificial intelligence (AI) sector, with a hedge fund manager predicting a significant price increase for its stock based on its unique user base and data potential [3][11]. Company Overview - Nextdoor operates as an online forum focused on neighborhoods and local businesses, allowing users to engage in community discussions and share local information [5][6]. - The platform has approximately 100 million users, which is seen as a valuable asset for AI systems that require real-world data [11][12]. Investment Perspective - Eric Jackson, the founder of EMJ Capital, has set a price target of $374 for Nextdoor, suggesting an upside of over 15,500% from its current price of $2.39 [3]. - Jackson believes that Nextdoor's user base provides "raw input" necessary for developing agentic AI systems, positioning the company as more than just a social media platform [11][12]. - The valuation approach used by Jackson involves comparing Nextdoor to other platforms like Yelp and Reddit, suggesting a potential shift in its business model towards data analytics and professional services [13]. Market Dynamics - Jackson's previous successful investments indicate a potential for Nextdoor to attract attention from retail and institutional investors, which could lead to significant stock price movements [9][10]. - However, there are concerns that the stock may become a target for day traders, which could lead to volatility and risks for long-term investors [15][16].