TLDR
- Better Home & Finance stock surged 46% after hedge fund manager Eric Jackson called it “the Shopify of mortgages”
- Jackson predicts BETR could be a “350-bagger in 2 years” with shares potentially reaching $12,000 from $34
- Better trades at just 1x forward sales compared to Figure Technologies at 19x despite reportedly faster growth
- The company uses AI systems “Betsy” and “Tinman” to operate with 900 employees versus 3,000 previously
- Stock has climbed over 700% since the start of 2025 with Monday’s trading volume exceeding 40 million shares
Better Home & Finance stock exploded higher Monday after a prominent hedge fund manager made a bold prediction about the mortgage technology company. The stock surged 46% following the analysis.
Eric Jackson of EMJ Capital posted an extensive breakdown on X calling Better “the Shopify of mortgages.” Jackson has gained attention for his previous call on Opendoor, which rose 1600% over three months.
Jackson suggested BETR could become a “350-bagger in 2 years.” He believes shares could reach $12,000 compared to Friday’s close of $34.
Better ( $BETR) is the Shopify of mortgages.
It’s rebuilding a $15T industry from scratch with AI.$FIGR just IPO’ed & trades at 19× 2026 sales.
BETR trades at just 1× — but is growing faster than FIGR.I believe BETR is a potential 350-bagger in 2 years.
They laugh at BETR…— Eric Jackson (@ericjackson) September 22, 2025
The stock opened Monday with heavy trading activity. Better Home shares jumped as much as 176% during morning trading, hitting an intraday high of $94.06 per share.
Trading was halted several times due to volatility. More than 40 million Better Home shares changed hands Monday, compared to the stock’s average daily volume of less than 83,000 shares.
Jackson highlighted Better’s position in rebuilding the $15 trillion mortgage industry using artificial intelligence. He pointed to the company’s competitive valuation compared to peers.
Figure Technologies trades at 19 times projected 2026 sales following its recent IPO. Better trades at just 1 times forward sales despite reportedly growing faster than Figure.
Technology and Efficiency Gains
The hedge fund manager emphasized Better’s AI systems as key advantages. The company uses AI platforms called “Betsy” and “Tinman” to streamline operations.
These systems allow Better to operate with 900 employees versus 3,000 previously. Jackson believes this efficiency could help the company scale to much higher origination volumes.
Better has reduced its workforce while maintaining operational capacity through automation. The company’s technology-first approach differentiates it from traditional mortgage lenders.
Jackson argued the AI licensing potential adds another revenue stream. He sees opportunities for Better to sell its technology to other financial institutions.
Revenue Projections and Growth Path
Jackson projected Better could reach $12 billion in revenue by 2028. He outlined three main growth drivers for achieving this target.
The direct-to-consumer business represents the first pillar of growth. Better’s online platform allows customers to apply for mortgages digitally.
Institutional partnerships form the second growth area. The company can leverage its technology to serve other lenders and financial institutions.
AI licensing represents the third revenue opportunity. Better’s proprietary systems could generate income from technology partnerships.
Market Performance and Investor Interest
Better Home & Finance has delivered substantial returns this year. The stock has climbed more than 700% since the start of 2025.
Jackson’s track record with Opendoor has drawn attention to his latest call. His previous analysis helped drive retail investor interest in that stock.
EMJ Capital disclosed it holds a long position in Better Home & Finance stock. Jackson also suggested potential synergies between Better and Opendoor, where he maintains a position.
The mortgage technology sector has attracted investor interest as companies digitize traditional processes. Better’s AI-focused approach positions it within this trend.
Jackson noted that investors initially dismissed other stocks he highlighted. He compared the current skepticism around Better to early reactions to Carvana and Opendoor.
Better closed Monday’s session at $54.71, representing a 60.5% gain from the previous close.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
