TLDR
- Better Home & Finance stock jumped 46% after hedge fund manager Eric Jackson called it “the Shopify of mortgages”
- Jackson predicts BETR could become a “350-bagger” with shares reaching $12,000 from current $34 price
- Company trades at 1x forward sales versus competitor Figure Technologies at 19x despite faster growth
- Better uses AI systems “Betsy” and “Tinman” to operate with 900 employees versus 3,000 previously
- Stock has gained over 700% year-to-date with Monday volume exceeding 40 million shares
Better Home & Finance stock exploded Monday after prominent hedge fund manager Eric Jackson posted a bullish analysis calling the mortgage technology company a potential massive winner. BETR shares surged 46% on the endorsement.
Jackson, founder of EMJ Capital, described Better as “the Shopify of mortgages” in a detailed breakdown posted on social media platform X. His analysis sparked intense trading activity with over 40 million shares changing hands.
The hedge fund manager has gained credibility for his previous call on Opendoor Technologies, which rose 1600% over three months following his endorsement. Jackson suggested BETR could deliver similar outsized returns.
Jackson believes Better could become a “350-bagger in 2 years” with shares potentially reaching $12,000 compared to Friday’s close of $34. The stock opened with heavy volume and hit an intraday high of $94.06 during morning trading.
Multiple trading halts occurred due to volatility as retail investors piled into the name. Better’s average daily volume typically runs below 83,000 shares, making Monday’s activity extraordinary.
AI Technology Drives Efficiency
Jackson highlighted Better’s artificial intelligence systems as key competitive advantages in the $15 trillion mortgage industry. The company operates two AI platforms called “Betsy” and “Tinman” that automate traditional lending processes.
These systems allow Better to function with just 900 employees compared to 3,000 previously while maintaining operational capacity. Jackson argues this efficiency could enable massive scaling as mortgage origination volumes grow.
Better’s technology-first approach differentiates it from traditional lenders who rely on manual underwriting and processing. The AI licensing potential represents another revenue opportunity beyond direct lending.
Valuation Gap Creates Opportunity
Jackson emphasized Better’s attractive valuation compared to mortgage technology peers. Figure Technologies trades at 19 times projected 2026 sales following its recent IPO.
Better trades at just 1 times forward sales despite reportedly growing faster than Figure. This valuation disconnect creates potential upside if the market recognizes Better’s growth trajectory.
Jackson projected Better could reach $12 billion in revenue by 2028 through three main drivers: direct-to-consumer mortgages, institutional partnerships, and AI technology licensing to other financial companies.
EMJ Capital disclosed a long position in Better Home & Finance stock. Jackson also noted potential synergies between Better and Opendoor, where he maintains an investment.
Better closed Monday’s session at $54.71, representing a 60.5% gain. The stock has climbed over 700% since the start of 2025, making it one of the year’s best performers in the financial technology sector.
