Nextdoor Stock Rockets Nearly 30% After Eric Jackson Highlights AI-Driven Upside

Nextdoor Holdings Inc (NYSE:NXDR) caught Wall Street's attention early Wednesday with a nearly 30% jump in premarket trading. The catalyst? Activist investor Eric Jackson laid out a passionate case for the company, branding it as the most undervalued AI-focused platform of this decade.

Jackson, known for shaking up the retail tech space and spearheading Opendoor's rally from pennies to several dollars a share, zeroed in on Nextdoor's core strengths. He praised its blend of verified user identity, community trust, and location-based insights as a potent trifecta that's yet to be properly priced into the stock.

One of the pillars in his argument is Nextdoor's "neighborhood graph" - a network he claims took ten years to establish and boasts 100 million verified real users without fake profiles. According to Jackson, replicating this asset would cost billions and require a massive engineering effort, highlighting its defensible moat.

Operational strides under CEO Nirav Tolia also factored into Jackson's outlook. He pointed to reductions in spam, boosted revenue per employee, and the company reaching positive EBITDA, painting a picture of a business building momentum even before unlocking AI's full potential.

Interestingly, Jackson drew a parallel between Nextdoor and Reddit (NYSE:RDDT), suggesting that applying Reddit's forward revenue multiples to Nextdoor's 2026 projections implies a current share price around $11 - a significant premium over the existing $2 range.

Diversifying its revenue beyond traditional ads is a major theme. Jackson highlighted lead generation for local services and introduced "Opportunity Alerts," an AI-enhanced commerce tool designed to connect neighbors with relevant sellers and service providers, laying the groundwork for substantial revenue streams ahead.

Jackson was ambitious in his long-term forecast, outlining a "power-law" scenario where Nextdoor's revenue could hit $5.7 billion by 2029. This vision values the stock north of $370 per share, underscoring his confidence in the company fully leveraging AI and community data.

Given Jackson's track record of spotting overlooked tech stocks before explosive rallies, including Carvana (NYSE:CVNA), investors will likely continue weighing whether Nextdoor's untapped AI promise can justify this fresh surge in share price.