Rocket Companies Is Citron's 'Call of the Year,' Dubbed The 'Amazon Of Housing'

Best known for shorting stocks like GameStop, Citron Research's Andrew Left also shares long calls on stocks that are undervalued by Wall Street.

Citron shared its latest stock pick Tuesday, a company it believes is misunderstood by investors.

What Happened: Citron said Tuesday it is "pounding the table" on Rocket Companies RKT, a company best known for its mortgage and personal finance businesses. Citron said recent acquisitions by the company could also help the bullish case.

"This will be our call of the year!" Citron tweeted.

Citron said Rocket Companies is a "sleeping juggernaut of real estate" with vertical integration. The tweet said the company is leveraging AI and data to "build the Amazon of Housing."

Rocket is more than a play on mortgage refinances and doesn't need lower interest rates to win, the tweet said.

"Rocket is building the dominant real estate platform – where higher rates weed out competition and drive more share to scale players."

Citron said the U.S. mortgage market is still behind with less than 15% of mortgages originating online, despite 85% of home searches starting online.

AI could be Rocket's biggest advantage with the company building proprietary, in-house AI, according to Citron.

"Rocket Logic is quietly becoming the brain of the entire platform. This is Salesforce meets Zillow meets TurboTax, but for mortgages."

The tweet says Rocket is using AI in a boring sector, likely hurting its valuation.

"Rocket is quietly using AI to modernize the most broken part of consumer finance: housing."

Read Also: GameStop Short Seller Andrew Left Goes Long On China And These 2 US Stocks Amid Market Correction

What's Next: Citron said Rocket's recent acquisition of Mr. Cooper was underappreciated and creates a 1+1=3 scenario. The acquisition adds scale, reach, leads and margin expansion according to Citron Research.

The tweet lays out Rocket Companies’ future valuation in the first refinance boom. The company gained EBITDA and scale from the acquisitions of Mr. Cooper and Redfin. Citron predicts Rocket Companies could have $4 billion of annual EBITDA in the future.

With a 15x multiple on EBITDA, an enterprise value of $60 billion is reached, which would make Rocket Companies stock worth around $33.33.

"Rocket Mortgage is on track to become the most dominant mortgage company in the world within three years. The U.S. residential housing market is the largest commerce vertical on the planet – bigger than autos, bigger than health care – and it's still largely analog, fragmented, and inefficient."

RKT Price Action: Rocket Companies stock is up 4.1% to $12.14 on Tuesday versus a 52-week trading range of $10.06 to $21.38. Rocket Companies stock is up 12.1% year-to-date in 2025, while shares remain down over 15% in the last year.

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