TLDR
- Nextdoor Holdings Inc. (NXDR) shares surged as much as 49% on Wednesday, the biggest jump in over four years
- Eric Jackson from EMJ Capital took a bullish stance, calling Nextdoor “one of the most misunderstood platforms in the market”
- Jackson believes the company’s AI potential is undervalued, citing its network of 100 million verified households with zero bots
- The hedge fund manager previously drove Opendoor up 360% this year and Better Home up 176% in September
- Jackson’s stock picks attract retail day-traders and have drawn comparisons to meme-stock influencer Keith Gill
Nextdoor Holdings Inc. saw its stock price rocket Wednesday morning after a hedge fund manager known for sparking retail trading frenzies set his sights on the neighborhood social media platform. The shares jumped as much as 49% in early trading, marking the company’s biggest single-day gain in more than four years.
Eric Jackson, founder of Toronto-based hedge fund EMJ Capital, called Nextdoor “one of the most misunderstood platforms in the market.” His comments came as he outlined a bullish case for the stock, focusing on the company’s untapped potential in artificial intelligence.
Jackson argues that Wall Street is getting it wrong. Traders are valuing Nextdoor like a simple local advertising business, he says. But the platform actually sits on something more valuable.
The hedge fund manager points to Nextdoor’s network of over 100 million verified households. These are real identities, not fake accounts or bots. Jackson calls this “one of the most irreplaceable identity graphs in the AI era.”
This isn’t Jackson’s first rodeo with retail-driven stock rallies. His track record this year has been pretty wild.
The Meme Stock Whisperer
Opendoor Technologies has been Jackson’s biggest winner. The stock has rallied over 360% in 2025. Most of those gains came after June, when Jackson started promoting the stock. The shares have pulled back about 30% from their September peak, but the gains remain substantial.
In September, Jackson’s hedge fund helped drive Better Home & Finance Holding Co. up 176%. The move sparked comparisons to Keith Gill, the social media influencer who became famous during the original meme stock craze.
EMJ Capital’s stock picks have attracted scrutiny. Critics point to the volatile nature of the companies Jackson targets. These stocks tend to draw large numbers of retail day-traders.
The pattern is becoming familiar. Jackson identifies a stock he believes is undervalued. He shares his thesis publicly. Retail traders pile in. The stock surges.
Platform Performance and Past Controversies
Nextdoor has dealt with its share of challenges. The company successfully defended itself against allegations of overhyping its active user numbers. These claims surfaced before the social media platform went public.
The platform connects neighbors within local communities. Users share recommendations, report local issues, and organize neighborhood events. The business model relies on local advertising and partnerships.
Jackson believes this local focus makes Nextdoor’s verified user base especially valuable for AI applications. He sees potential that current market valuations don’t reflect.
The stock closed Wednesday up about 16% after the early morning surge moderated. Trading volume was multiple times the daily average as retail investors responded to Jackson’s comments.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
