Nextdoor surging as meme fund manager calls it 'one of most misunderstood platforms'
Shares of Nextdoor, which operates a hyperlocal social networking service for neighborhoods, have jumped more than 25% in the first minutes of early trading on Thursday, December 11, extending the previous day’s rally. The surge followed comments from EMJ Capital, the hedge fund behind the revival of "meme mania" – it called the company “one of the most misunderstood platforms in the market,” which has yet to recognize its potential in AI.
Details
Nextdoor shares are up more than 25% at $3.18 apiece in the first minutes of early trading on Thursday.
This extended the rally from the previous day. On Wednesday, quotes climbed nearly 26% to $2.53 per share, the highest closing price since the end of February.
The catalyst was comments by Eric Jackson, founder of the Toronto-based hedge fund EMJ Capital. He said Nextdoor is “one of the most misunderstood platforms in the market,” which has yet to recognize its potential in AI, Bloomberg reports. The company claims to be "the essential neighborhood network" for over 100 million verified neighbors, offering trusted local news, real-time safety alerts, neighbor recommendations, for sale and free listings, and events.
Jackson said Wall Street traders are still valuing the company like a "low-growth local advertising business" when it really “sits on one of the most irreplaceable identity graphs in the AI era.” He cited the platform’s reach of over 100 million real verified households with real identities and zero bots as its key strength.
According to MarketWatch data, the most common rating on the stock is “hold,” with four analysts assigning that view versus only one recommending “buy.” The average target price of $2.65 per share is below current quotes.
About Jackson and EMJ Capital
Bloomberg describes Jackson as the investor who revived meme mania. He was behind the rally in Opendoor, a home-buying and selling platform. Since the beginning of the year, Opendoor’s quotes have surged over 377%, with most of the gains occurring after June, when Jackson began promoting the stock.
Jackson’s hedge fund, Bloomberg notes, also sparked a 176% surge in Better Home in September, generating comparisons with meme-stock social media influencer Keith Gill. The fund’s holdings have come under scrutiny for featuring a volatile collection of companies that attract many retail day-traders.
