Eric Jackson, the architect behind the massive retail rally in Opendoor Technologies, Inc. (NASDAQ:OPEN) , has identified his next high-conviction “100-bagger” candidate as Nextdoor Holdings, Inc. (NYSE:NXDR) .NXDR stock is climbing. See the chart and price action here. Jackson lit a fire in the stock on Wednesday when he declared Nextdoor “the most mispriced Agentic-AI platform of the 2020s.” The recommendation immediately sent shares soaring, much like the previous “meme stock” rallies Jackson inspired in ...

Core Viewpoint - The surge in stock prices for companies like Nextdoor and Opendoor is driven by retail investors and hedge fund manager Eric Jackson, who is seen as a leader among these investors [1][5]. Group 1: Nextdoor's Performance and Potential - Nextdoor's stock price increased by 25.87% in one day, reaching a peak increase of nearly 50%, marking its largest intraday gain in over four years [1][3]. - The company, which went public through a SPAC merger in 2001, focuses on community-based social media, allowing users to connect with neighbors and access local news [3][4]. - Despite revenue growth, Nextdoor has struggled with profitability, but Jackson believes it is one of the most misunderstood platforms in the market, particularly regarding its AI potential [3][4]. Group 2: Eric Jackson's Influence - Jackson argues that Wall Street traders underestimate Nextdoor, viewing it primarily as a low-growth local advertising business, while it actually possesses a unique identity graph valuable in the AI era [4]. - He emphasizes the platform's core strengths, including over 100 million verified household users and minimal bot accounts, suggesting that Nextdoor's current stock price of around $2 may represent a pivotal moment for the company [4]. - Jackson has previously driven significant stock price increases for other meme stocks, such as Opendoor, which saw a rise of over 360% this year, largely following his recommendations [5].

Core Viewpoint - Nextdoor Holdings Inc. shares have seen a significant increase following an investment thesis shared by investor Eric Jackson, highlighting the platform's verified user network and operational improvements under CEO Nirav Tolia [1][2][3]. Group 1: Company Overview - Nextdoor is described as a verified neighborhood platform with 100 million users across 10 countries, emphasizing real identity verification and geographic proximity [2]. - The company has undergone operational changes in the past 18 months, including an 80% reduction in spam alerts and a rebuilt onboarding process [3]. Group 2: Investment Insights - Eric Jackson holds a long position in Nextdoor and has presented a valuation map suggesting a fair value of approximately $11 today, with potential future valuations of $245 and $374 by 2028 [4][5]. - The estimates provided by Jackson do not account for international expansion, user growth to 300 million, or new AI-driven features [5]. Group 3: Trading Performance - Nextdoor's stock has rebounded 59.12% over the past six months, despite a 7.66% decline over the past year, with a current market capitalization of $992.03 million [6]. - The stock closed at $2.53 on Wednesday, reflecting a 25.87% increase, and has a 52-week trading range of $1.32 to $2.99 [6].

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].

As the year winds down to a close, with just three weeks left on the calendar, Nextdoor may be the next, last, big meme stock of 2025. Here’s why. Most Read from Fast Company What happened? On Wednesday, Nextdoor Holdings Inc. (NYSE: NXDR) shares rose 49% in early trading, the most in over four years, according to Bloomberg. The gains come on the heels of a series of posts on X on Wednesday morning by investor Eric Jackson, founder of the EMJ Capital hedge fund, who described the neighborhood-focused ...

Core Insights - Nextdoor is a local social app with a user base exceeding 100 million verified neighbors [1] - The company recently launched its platform transformation initiative called NEXT in July [1] Company Overview - Nextdoor was co-founded by Nirav Tolia, who currently serves as the CEO [1] - The app focuses on fostering community connections among neighbors [1]

Financial Data and Key Metrics Changes - In Q2, users, revenue, and profitability each improved year over year, with revenue growth driven by momentum in the self-serve channel [16][22] - Q2 revenue was $65 million, up 3% year over year, while self-serve revenue grew 27% year over year and accounted for nearly 60% of total revenue [22][24] - Q2 GAAP net loss was $15 million, representing a negative 24% margin, while adjusted EBITDA loss was $2 million, reflecting a six percentage point year over year improvement [26][28] Business Line Data and Key Metrics Changes - The self-serve channel has become a key contributor to growth, improving advertiser performance, revenue yields, and advertiser retention [16][22] - The new product features, including local news, real-time alerts, and the FAVES AI assistant, aim to increase daily utility for users and create richer surfaces for advertisers [11][12][14] Market Data and Key Metrics Changes - Local news now accounts for roughly 5% of overall feed content, reaching 77% of U.S. cities, with over half of users engaging with this content [8][47] - The alert feature is expected to grow as real-time events occur, enhancing user engagement during critical situations [48][50] Company Strategy and Development Direction - The company is undergoing a transformation focused on product excellence, operational discipline, and community engagement, aiming to become the essential neighborhood network [5][18] - A restructuring plan was announced to improve focus and efficiency, including a workforce reduction to reset the cost structure and aim for adjusted EBITDA breakeven in 2026 [18][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the transformation strategy, emphasizing the importance of user experience and the potential for long-term value creation [64][65] - The company expects modest year-over-year revenue growth for the full year 2025, with a path to quarterly adjusted EBITDA breakeven in Q4 [29][30] Other Important Information - The company ended the quarter with $413 million in cash and no debt, indicating a strong balance sheet [27] - A leadership change was announced, with Craig Lisowski appointed as President of Products and Matt Anderson stepping down as CFO [19][20] Q&A Session Summary Question: Can you quantify the changes made to ad loads and the strategy for turning them back on? - Management indicated that the focus is on optimizing user experience first rather than increasing ad load, with excitement about experimenting with new ad formats [35][36] Question: What feedback have you received from advertisers regarding the new platform? - Management noted that CMOs expressed a desire for a better user experience, which aligns with the company's focus, and they plan to work closely with advertisers to define new ad formats [40][42] Question: What are the evolving use cases for the Nextdoor app and which surfaces are users spending the most time on? - Management highlighted that local news and alerts are gaining traction, with significant user engagement, while alerts will grow organically based on real-time events [47][48] Question: How are budget conversations with large advertisers evolving? - Management reported meaningful quarter-over-quarter improvements and expects ongoing gradual benefits from programmatic partnerships and click optimization for larger advertisers [52][54]