Should You Buy Nextdoor Stock for Less Than $3?

When it comes to notable investors, names like Warren Buffett, Bill Ackman, and Stanley Druckenmiller often surface first. And when it comes to artificial intelligence (AI) stocks, companies such as Alphabet, Amazon, or Meta Platforms are usually top-of-mind for investors. Perhaps unsurprisingly, Buffett, Ackman, and Druckenmiller all hold positions of some combination in these "Magnificent Seven" stocks. Every so often, however, someone outside of Wall Street's most famous titans emerges with a "next big thing" type of proclamation and sends shockwaves throughout the market.

Enter Eric Jackson, the founder of investment firm EMJ Capital. If you've never heard of Jackson, you're not alone. Recently, the hedge fund manager revealed that he thinks Nextdoor (NXDR +3.24%) stock is headed to $374 -- implying more than 15,500% upside from its current price of $2.39. The reason? AI, of course. Did Jackson just identify the next AI stock to go parabolic? Read on to find out. ExpandNYSE: NXDRNextdoorToday's Change(3.24%) $0.07Current Price$2.23Key Data PointsMarket Cap$874MDay's Range$2.09 - $2.3352wk Range$1.32 - $3.72Volume14MAvg Vol4.7MGross Margin83.22% What does Nextdoor do, and why is it important? Nextdoor operates as an online forum focused on neighborhoods and local businesses. Users can post questions or discussions about events related to their specific zip code or city.Advertisement For example, if your dog ran away from home, posting on Nextdoor may alert more people in your area than a generic Facebook post. Alternatively, if your Church is hosting a holiday shopping fair, you can post pictures and updates about it on the Nextdoor platform. Image source: Getty Images. Who is Eric Jackson, the hedge fund manager? Eric Jackson is not your typical financial analyst. He does not hold an MBA, nor has he worked at an investment bank. Rather, Jackson studied English Literature at McGill University and later completed a Ph.D. program at Columbia Business School. Prior to founding EMJ Capital, Jackson worked in various operating positions at technology start-ups and also spent some time as a management consultant. Despite his unorthodox background, Jackson has proven he knows how to make money. Some of his bullish calls included Carvana, Opendoor, Better Home & Finance Holding Company, Iren, Cipher Mining, and Sana Biotechnology. Here's my track record with mispriced platforms:•CVNA at $3.50–$11 → $456•OPEN at $0.51-$0.73 → $8•BETR before institutions•SANA at the turn•IREN / CIFR / HUT pre-run•BTQ at $0.21 1 year ago → now $6.85We started buying NXDR at $1.70.The pattern is always the... -- Eric Jackson (@ericjackson) December 10, 2025 As Jackson's post from X (formerly Twitter) shows, his firm initiated positions in each of these stocks before institutional and retail capital followed and inspired run-ups. Is Nextdoor stock a buy? Why is Jackson so optimistic about Nextdoor to begin with? In his view, Nextdoor is largely perceived as nothing more than a social media platform. Against this backdrop, Jackson argues that investors see Nextdoor as simply another channel for advertisers. Jackson is thinking bigger -- he sees more than a social network. With 100 million users on the platform, Jackson labels Nextdoor the "verified neighborhood graph of the world." With actual people from real households and communities constantly turning to Nextdoor for updates and community-driven discussions, Jackson posits that the company holds the "raw input" that agentic AI systems need. In theory, Jackson could be onto something here. Nextdoor could be an underappreciated network of people on a global scale that has the chance to transform its entire business in an AI-driven era where data and information are the ultimate assets. But does that make the stock a buy? To derive his future share price target, Jackson uses a triangulation of valuation multiples from Yelp, Reddit, Angi, and Palantir Technologies. In essence, he's applying the advertising model from legacy online communities while drawing a parallel to the recurring usage of tech-enabled professional services and data analytics software. In a way, his idea isn't completely far-fetched. But where he loses me is that his actual analysis assumes that everything goes right for Nextdoor and the company successfully evolves into a next-generation agentic AI platform valued like a high-flying growth stock. Given Jackson's track record, I feel comfortable saying he has a knack for inspiring rallies in meme stocks in particular. While Nextdoor could have some upside, my suspicion is that it will quickly become a hive mind for day traders now that Jackson's position has become public. Given these dynamics, I think Nextdoor is a stock worth monitoring but not necessarily one to follow the momentum in right now. At the moment, investing in Nextdoor comes with the added risk of becoming a bag holder should enthusiasm wane and shares come crashing down. For the time being, Nextdoor is not a true AI opportunity, and it should not trade like one.