Shares of Better Home & Finance Holding Company have seen remarkable gains over the past few days, experiencing a surge of up to 50% on Tuesday alone, following an increase of as much as 120% since last Friday’s close. This year, the stock has impressively soared by 680%.
The catalyst for this surge was hedge fund manager Eric Jackson’s announcement on September 22 that his firm, EMJ Capital, has taken a long position in Better’s stock. This follows his previous successful bullish endorsement of Opendoor Technologies, which drove that stock’s value significantly higher over the summer. Jackson has set an ambitious price target of $82 for Better’s stock, projecting a staggering potential gain of 900% from its current levels.
In a post on social media platform X, Jackson elaborated on his bullish outlook for Better, likening it to Opendoor and Carvana—another stock that gained attention this year following a positive call from him. Jackson described Better as “the Shopify of mortgages,” forecasting that the stock could soar to become a “350-bagger” over the next two years. He emphasized Better’s role in transforming a $15 trillion industry through innovative use of artificial intelligence.
Jackson’s comparison highlighted that, much like Shopify before its significant rise in 2020, Better operates in a way that many may not fully grasp just yet. The company combines direct-to-consumer operations with a behind-the-scenes focus that aids small businesses in reaching their markets. Jackson noted that achieving a revenue of $12 billion by 2028 is within the realm of possibility, citing factors such as scaling back to previous revenue levels and re-engaging with customers acquired over the past three years.
Better Home & Finance provides various real estate services, including mortgage lending and brokerage services. Jackson has projected the stock could reach $626 per share, which would represent an increase of over 1,100% from its closing price of $49.98 on Monday.
While Jackson’s enthusiasm for Better continues to rise, the stock has yet to gain substantial momentum on retail investing forums like Reddit, where Opendoor has become a favorite among investors. Some experts speculate that a decrease in interest rates could further bolster the housing market and invigorate interest in real estate stocks. Jackson views shifts in monetary policy as positive for both Better and Opendoor, suggesting that reductions in mortgage rates could unlock increased volumes for Better and invigorate activity in the housing market.
Interestingly, shares of Opendoor encountered headwinds on Tuesday, declining by as much as 12%. This drop followed a regulatory filing that revealed a significant investor had divested over 11 million shares, casting a shadow on the company as Better’s shares continued to rally. Jackson’s vision positions Better not as a competitor but as a potential partner to Opendoor, suggesting that their combined offerings could streamline processes for home sellers.
With the current enthusiasm surrounding Better’s growth potential, the market remains on alert for how the stock may perform in the coming weeks and months.
