Nextdoor Holdings (KIND -1.73%), the neighborhood-focused social media platform, recently went public via special purpose acquisition company (SPAC) merger, and shares have been beaten down in the recent growth stock turbulence. In this Fool Live video clip, recorded on Jan. 24, Fool.com contributor Matt Frankel discusses why he thinks Nextdoor could be a big long-term winner for patient investors.

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Matt Frankel: This is Nextdoor. Ticker symbol is kind K-I-N-D. The reason it is, because they are trying to create a kinder world. Everyone listening on Fool Live is a member of at least one of our services.

You know that management is one of the biggest parts of our investing thesis and for good reason. I mean, Warren Buffett considers good management to be one of the most valuable things when he looks at a company. That's one of the big reasons that Nextdoor is quite possibly my favorite company to have gone public through SPAC in 2021. They just completed their SPAC merger in November, so they're very new to the public markets. Their CEO is Sarah Friar if that name sounds familiar. She was CFO at Square [now Block] and took Square essentially from a niche payment processor to a giant financial ecosystem. People say that she had more to do with that company than Jack Dorsey did. Nextdoor stole her away to be their next CEO and she is now in charge of this company.

They are a social network for neighborhoods. I'm sure a lot of people on this call are familiar with Nextdoor because one out of every three households in the U.S. has a Nextdoor member. Marc [Fool.com contributor Marc Rapport] is a Nextdoor member. I know that for a fact because we were talking about it today. Marc is their target demographic. Nextdoor targets people who are not active on most other social media platforms. I know from talking to Marc, he's not a Snapchat user, for example, he doesn't play on Instagram very often or Twitter, but he's on Nextdoor.

It's kind of a niche market to advertise to customers at the other social media companies are overlooking. They need to figure out monetization. They have 63 million verified users, 33 million active users. Their monetization is roughly one-fourth that of Pinterest in terms of average revenue per user.

Jon Quast: Pinterest isn't all that high.

Frankel: That's very true. Pinterest is not all that high. I'd compare them to Facebook [Meta Platforms], but it would be like something like 2% of Facebook's monetization. They need to get a lot better with monetization. But the price is right after the recent decline they're almost 60% off the high. They weren't even public for two months, they are 60% off the high. They trade at a market cap of about $2 billion. That's about half of what SPAC investors paid.

If you want to get it for less of the insiders, $2 billion for a social network is like nothing. Facebook passed that valuation while Mark Zuckerberg was still just a private businessman, then going public was not even a thought when they were at that type of valuation. A good opportunity to get in on a social network early that's run by a top-notch manager. I cannot say enough good things about how big Sarah Friar is in my investment thesis here. I like this one.