We came across a bullish thesis on Nextdoor Holdings, Inc. (KIND) on Substack by Nishant Chandra. In this article, we will summarize the bulls’ thesis on KIND. Nextdoor Holdings, Inc. (KIND)'s share was trading at $1.43 as of April 8^th.

A person using a tablet device to interact with personalized content on a social platform.

Nextdoor (KIND) is a hyperlocal social platform with a unique market position, serving over 250,000 neighborhoods across 11 countries. It operates as a neighborhood-focused network that facilitates real-time, community-based conversations, making it indispensable during events like natural disasters or local emergencies. With 45 million weekly active users and a growing monthly user base—recently reaching 35 million—Nextdoor has demonstrated consistent engagement and 13% year-over-year user growth, a rarity among social platforms. The company is currently trading at $2.53 per share with a market cap of $963 million, despite holding $425 million in cash and having no debt. This valuation disconnect suggests a significant upside, especially given the platform's unique user base and strong brand presence.

Nextdoor’s return to growth is being led by founder and CEO Nirav Tolia, whose comeback—backed by venture firm Benchmark—has sparked optimism that the company may go private to unlock full value, particularly if institutional capital remains hesitant. Tolia and Benchmark have yet to sell shares and have publicly stated ambitions to double the current market cap, reflecting strong internal conviction. The company's ad platform, still in early innings, represents a substantial monetization lever. Additional upside could come from selling anonymized user data to AI companies, a strategy already gaining traction in the tech world.

Despite not yet achieving profitability, KIND has improved EBITDA margins and cut expenses, signaling operational discipline. In Q4, the company delivered $125 million in revenue (up 15% YoY) and beat EPS expectations, even as ad impressions temporarily declined due to platform upgrades. With a loyal, growing user base, a leadership team focused on long-term value, and a solid financial foundation, Nextdoor stands out as a highly asymmetric investment opportunity—undervalued today but well-positioned for a major re-rating as monetization improves and strategic options unfold.

Nextdoor Holdings, Inc. (KIND) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held KIND at the end of the fourth quarter which was 24 in the previous quarter. While we acknowledge the risk and potential of KIND as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than KIND but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.