Nextdoor sets out stall as the anti-metaverse

2 minute read

Sarah Friar, CEO of Nextdoor, speaks during an interview while attending her company’s IPO at the New York Stock Exchange (NYSE) in New York City, U.S., November 8, 2021. REUTERS/Brendan McDermid

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NEW YORK, Nov 8 (Reuters Breakingviews) - Nextdoor is showcasing the merits of being a safer, gentler alternative to Facebook. Shares in the neighborhood social network led by Sarah Friar soared over 50% before closing up 17% on Monday after it went public through a merger with a special-purpose acquisition company sponsored by Khosla Ventures. Nextdoor is nipping at the heels of Mark Zuckerberg's $949 billion Meta Platforms (FB.O), as it's now called, a potentially risky business plan read more . With the larger company's recent challenges read more , though, Nextdoor's nicer approach may be working.

Investors took notice after Nextdoor completed its merger late last week. The SPAC's shares have been listed all along, and it's unusual for the finalization of an already known deal to trigger such a big effect. Moreover, most post-merger SPACs are trading below the $10-a-share price at which they originally raised cash from investors, according to SPAC Research.

Worth more than $5 billion in market capitalization, Nextdoor is valued at nearly 20 times the company’s own projected sales next year, after backing out cash. That’s a much higher mark than Zuckerberg's behemoth. Investors seem to appreciate the new kid on the block – and its ticker symbol, "KIND." (By Jennifer Saba)

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Editing by Richard Beales and Thomas Shum

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