Better Home & Finance Holding Co (NASDAQ: BETR) soared over 30% on Tuesday after activist investor Eric Jackson revealed a long position in the digital-first homeownership platform.
In his latest social media post, the founder of hedge fund EMJ Capital dubbed Better “the Shopify of mortgages,” adding the NY-headquartered firm could easily be a “350-bagger in 2 years.”
Jackson’s uber-bullish remark on BETR stock is particularly meaningful since it’s already up more than 400% versus the start of this year (2025).
What ‘Shopify of mortgages’ remark mean for BETR stock
Jackson’s comparison to Shopify isn’t just rhetorical – it’s a strategic framing of Better’s tech-first approach to mortgage origination.
Like Shopify’s role in democratizing e-commerce infrastructure, BETR aims at streamlining the home financing process using AI-powered platforms like Tinman and Betsy, which automate tasks from rate quotes to underwriting.
According to the EMJ founder, this could reshape a $15 trillion industry, much like SHOP did for online retail.
“They laugh at BETR shares now at $34 like they laughed at CVNA at $3.5 and OPEN at 51 cents. But this is no meme,” he wrote, adding weight to the narrative – and positioning Better stock as a disruptive force in a legacy-dominated space.
For momentum traders and tech-focused investors, the analogy is compelling – but it’s not without caveats.
Why Better shares remain a high-risk investment in 2025
Despite Jackson’s optimism, Better Home & Finance fundamentals paint a more troubling picture.
The company recorded adjusted EBITDA loss of $27 million for its fiscal Q2 in August – up from $23 million in the same quarter last year.
While revenue went up some 37%, the path to profitability remained uncertain.
Investors should also note that loan origination expenses, though reduced via AI, are still expected to rise as BETR leans into growth.
Additionally, the Nasdaq-listed firm lacks meaningful insider buying data – another major red flag for investors seeking conviction from management.
BETR stock’s valuation has ballooned on speculative momentum, with little clarity on sustainable earnings.
Add to that the macro headwinds in real estate and mortgage markets, and Better starts to look more like a high-beta gamble than a long-term compounder.
Is it worth investing in BETR shares today?
Eric Jackson’s endorsement has undeniably lit a fire under BETR shares today – and the “Shopify of mortgages” label offers a seductive narrative.
But investors should tread carefully. The company’s artificial intelligence (AI) driven ambitions are promising – yet its financials remain fragile and its valuation stretched.
Without an insider conviction or a clear profitability roadmap, Better stock is best suited for speculative portfolios – not core holdings.
As with Carvana and Opendoor, early believers may be rewarded – but only if BETR can execute at scale and prove it’s more than just a meme stock.
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