Better Home & Finance (BETR) shares opened nearly 40% up on Tuesday after Eric Jackson, the founder of EMJ Capital, dubbed the online homeownership platform the “Shopify of mortgages.”
In a X post late on Sept. 22, the activist investor revealed a long position in BETR stock, adding it’s a “potential 350-bagger in 2 years.”
Following today’s explosive move to the upside, BETR shares are trading at about 8x their price in mid-January.
Why Is Jackson Bullish on BETR Stock?
Jackson is uber-bullish on BETR stock mostly because its innovative use of artificial intelligence (AI) gives it a competitive advantage within the real estate and mortgage markets.
Better’s tech-enabled systems – Betsy and Tinman – have enabled it to operate efficiently with just 900 employees compared to 3,000 previously.
According to Jackson, the New York-headquartered firm is strongly positioned to revolutionize the $15 trillion mortgage industry through digital transformation, much like Shopify (SHOP) did online retail.
The quarter-point rate cut the U.S. central bank announced last week could also serve as a tailwind for BETR shares since lower interest rates typically stimulate housing market activity.
The Risks of Owning BETR Shares in 2025
Jackson sees Better Home & Finance reaching as much as $12 billion in revenue by 2028 through its direct-to-consumer business, institutional partnerships, and AI licensing.
However, owning BETR shares is not without caveats. For one, its dramatic surge appears largely sentiment-driven rather than based on fundamental changes in the company’s business model or financial performance.
The global mortgage industry remains highly competitive and cyclical, with established players commanding significant market share. Meanwhile, a lack of broad Wall Street coverage is another red flag on Better stock.
In short, AI integration sure gives BETR a competitive edge, but its long-term success will depend heavily on execution and its ability to deliver genuine efficiency gains to mortgage providers.
For now, Better Home & Finance may be suitable only for high-risk investors with a long-enough time horizon.
This article was created with the support of automated content tools from our partners at Sigma.AI. Together, our financial data and AI solutions help us to deliver more informed market headline analysis to readers faster than ever. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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