The AI Play Hidden Inside a Mortgage Company
When someone calls a mortgage lender "the next Palantir," you're entitled to be skeptical. But hedge fund manager Eric Jackson isn't backing down from his bold thesis on Better Home & Finance Holding Co. (BETR). This week, he doubled down on his prediction that the company represents one of the best opportunities for 2026—not because it's a great lender, but because it's barely a lender at all anymore.
According to Jackson, who shared his analysis in a post on X by Jon Erlichman, Better has fundamentally rebuilt itself around two core AI technologies. The first is Tinman, which structures borrower and property data similarly to Palantir's ontology approach. The second is Betsy, an agentic AI layer that automates mortgage decision-making and execution from end to end.
The pitch is straightforward: these technologies let Better originate mortgages at significantly lower costs than traditional competitors while simultaneously improving speed, pricing accuracy, and customer experience. Jackson argues that the market still sees Better as a struggling mortgage lender trapped in a frozen housing market. What they're missing, he says, is that Better has quietly evolved into an AI operating system for housing finance—following the exact playbook that made Palantir (PLTR) a breakout success in a completely different sector.
From Mocked to Meme Stock God
Jackson earned his credibility the hard way. In mid-2025, he predicted a 15,978% upside for Opendoor Technologies Inc. (OPEN) when the iBuying platform was trading near its 52-week lows. The call was widely ridiculed at the time—until it wasn't.
Over the past six months, Opendoor has rallied approximately 1,492%, driven by renewed housing activity, retail investor enthusiasm, and genuinely improving unit economics. That track record earned Jackson the informal title of "meme stock god" among retail trading communities, and now he's applying the same analytical framework to Better.
The S-Curve Thesis
In a video post, Jackson highlighted what he sees as early signs of an inflection point. Better's revenue grew 51% year-over-year, while operating expenses remained flat—a combination that suggests the AI-driven automation is starting to scale efficiently. He believes that as mortgage and refinancing volumes recover heading into 2026, Better's cost advantage and technology infrastructure could trigger significant operating leverage.
Better shares closed Friday at $45.05, up 1.81% on the day. Jackson expects a "full re-rating" over the next 12 to 18 months, reiterating that Better remains his top stock pick for 2026 based on its AI transformation and long-term platform potential.
Whether Better can replicate Palantir's journey from misunderstood money-loser to Wall Street darling remains to be seen. But Jackson's recent track record means investors are paying attention—and in today's market, that attention alone can move stocks.