Why Did Nextdoor Holdings Stock Rocket Higher This Week?

• Eric Jackson gained credibility with a bullish telephone connected Carvana with consequent returns of implicit 9,000%.

• The hedge money manager sparked a meme banal rally successful Opendoor much recently.

• Investors should absorption connected a company's fundamentals first.

• 10 stocks we similar amended than Nextdoor ›

Although astir investors whitethorn not beryllium acquainted with Toronto-based EMJ Capital, its laminitis has gained much designation successful caller months. Eric Jackson precocious made headlines with a retail capitalist activistic run that led to a 15x determination successful 1 stock.

This week, helium highlighted societal networking work Nextdoor Holdings (NYSE: NXDR) successful a societal media post, sending shares soaring much than 50% astatine 1 point. Nextdoor banal was inactive higher for the week by 30.3% precocious Friday morning, according to information provided by S&P Global Market Intelligence.

Earlier this year, Jackson posted astir integer existent property level Opendoor Technologies, triggering a surge successful retail capitalist involvement that drove shares higher by much than 1,600% successful conscionable a fewer months. Like galore meme banal runs earlier it, though, Opendoor banal sank rapidly from its peak.

That doesn't mean the hedge money manager was incorrect successful his analysis, however. A anterior bullish telephone connected Carvana proved correct, arsenic shares of the online utilized car retailer rocketed implicit 100x successful the past 3 years.

Investors should presumption immoderate societal media run connected a banal with captious scrutiny, though. That skepticism is apt the crushed for Nextdoor's important diminution from the week's highs. Jackson posted that helium felt Nextdoor is "the astir mispriced Agentic-AI level of the 2020s."

Adding an artificial quality (AI) space to his station apt drew adjacent much views. Nextdoor whitethorn good person maturation up of it. But the banal is present valued astatine a marketplace headdress of astir $1 billion.

That's a comparatively precocious valuation for a institution with astir $250 cardinal successful income and much than $60 cardinal successful nett losses implicit the past 12 months.

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