Why Did Nextdoor Holdings Stock Rocket Higher This Week?
Summarize this article with:
By Howard Smith – Dec 12, 2025 at 11:53AMKey PointsEric Jackson gained credibility with a bullish call on Carvana with subsequent returns of over 9,000%. The hedge fund manager sparked a meme stock rally in Opendoor more recently. Investors should focus on a company's fundamentals first. These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: NXDRNextdoorMarket Cap$1.1BToday's Changeangle-down(-8.85%) $0.24Current Price$2.52Price as of December 12, 2025 at 12:42 PM ETOne hedge fund manager believes Nextdoor is the best way to capitalize on AI right now.Although most investors may not be familiar with Toronto-based EMJ Capital, its founder has gained more recognition in recent months. Eric Jackson recently made headlines with a retail investor activist campaign that led to a 15x move in one stock. This week, he highlighted social networking service Nextdoor Holdings (NXDR 8.85%) in a social media post, sending shares soaring more than 50% at one point. Nextdoor stock was still higher for the week by 30.3% late Friday morning, according to data provided by S&P Global Market Intelligence. Image source: Getty Images. Meme stock mania isn't dead Earlier this year, Jackson posted about digital real estate platform Opendoor Technologies, triggering a surge in retail investor interest that drove shares higher by more than 1,600% in just a few months. Like many meme stock runs before it, though, Opendoor stock sank quickly from its peak. That doesn't mean the hedge fund manager was wrong in his analysis, however. A prior bullish call on Carvana proved correct, as shares of the online used car retailer rocketed over 100x in the last three years. ExpandNYSE: NXDRNextdoorToday's Change(-8.85%) $-0.24Current Price$2.52Key Data PointsMarket Cap$1BDay's Range$2.49 - $2.9352wk Range$1.32 - $3.72Volume16MAvg Vol3.9MGross Margin83.22%Dividend YieldN/A Investors should view any social media campaign on a stock with critical scrutiny, though. That skepticism is likely the reason for Nextdoor's significant decline from the week's highs. Jackson posted that he felt Nextdoor is "the most mispriced Agentic-AI platform of the 2020s."Advertisement Adding an artificial intelligence (AI) angle to his post likely drew even more views. Nextdoor may well have growth ahead of it. But the stock is now valued at a market cap of about $1 billion. That's a relatively high valuation for a company with approximately $250 million in sales and more than $60 million in net losses over the last 12 months. About the AuthorHoward Smith is a contributing Motley Fool stock market analyst covering technology and industrial stocks. Prior to The Motley Fool, Howard spent nearly 30 years supervising quality and operations in the steel industry, mostly with leading steel company Nucor. He holds a bachelor’s degree in metallurgical engineering from Lafayette College and a master’s degree in environmental engineering from Johns Hopkins University.TMFBuilt2LastRead NextDec 10, 2025 •By Matt Frankel, CFPThe Hedge Fund Manager Who Called Opendoor's 10X Move Thinks This Micro-Cap Could Be the Next 100X StockNov 18, 2024 •By Matt Frankel, CFPHere's the Top Micro-Cap Stock on My Radar NowOct 9, 2024 •By Matt Frankel, CFP2 High-Risk, High-Reward Stocks I'd Buy Right NowSep 21, 2024 •By Matt Frankel, CFPWall Street Is Overlooking This High-Potential Stock, but I'm NotApr 23, 2024 •By Matt Frankel, CFPThis Technology Company Is Being Acquired at a Shocking 207% Premium -- and These 2 Stocks Could Be NextNov 8, 2023 •By Brett SchaferWhy Nextdoor Holdings Stock Was Falling Today