Shares of Better Home & Finance (BETR) surged dramatically on Monday after activist investor Eric Jackson labeled the company “the Shopify of mortgages” in a post on X, leading to a bullish outlook on the real estate firm. The stock, which opened at $33.50, saw its price soar to a high of $73 shortly after Jackson’s announcement, before stabilizing around $60 by midday.
In his post, Jackson revealed that his hedge fund, EMJ Capital, holds a long position in BETR. He expressed strong confidence in the company’s potential, stating, “Better [Home] ($BETR) is rebuilding a $15T industry from scratch with AI … I believe BETR is a potential 350-bagger in 2 years.” He also drew comparisons to Carvana, a stock that had made headlines due to its dramatic rise, noting that critics initially dismissed BETR just as they had Carvana when it traded at $3.50.
Jackson’s commentary highlighted the transformative potential of Better Home & Finance in the real estate sector, akin to how Shopify has revolutionized e-commerce with its platforms for online businesses. He pointed to this comparison as a sign of BETR’s potential in reshaping the mortgage industry.
The timing of Jackson’s endorsement comes amid a fluctuating landscape for real estate companies, particularly in light of the recent upheavals at Opendoor Technologies (OPEN). Jackson had previously set a price target of $82 for Opendoor when it was trading in penny stock territory below $1. Following the appointment of Kaz Nejatian, the former COO of Shopify, as Opendoor’s new CEO, the company has seen its stock more than double to over $9.
This swift rise in BETR’s stock reflects broader investor sentiment, driven in part by the shifting dynamics in the real estate market and the expectations for innovation through technology. Jackson’s knack for timing and identifying underappreciated stocks continues to garner attention, as seen with the dramatic growth of Carvana’s stock value, which has surged from below $10 to over $390 since his initial recommendations.
As BETR navigates the early stages of its growth, market watchers are keenly observing the implications of Jackson’s bullish predictions and the broader trends within the mortgage industry.
