Billionaire hedge fund investor Bill Ackman has taken a significant stake in Uber Technologies (NYSE:UBER), sending the ride-sharing giant’s stock up 9.4% on Friday. Ackman’s Pershing Square Capital Management now owns 30.3 million shares of Uber, making him one of the company’s top 15 shareholders.
Ackman Calls Uber a ‘Massive Discount’ Opportunity
Ackman revealed his stake in Uber via a post on X (formerly Twitter), where he expressed strong confidence in the company’s management and long-term potential.
“We believe that Uber is one of the best managed and highest quality businesses in the world,” Ackman wrote. “Remarkably, it can still be purchased at a massive discount to its intrinsic value. This favorable combination of attributes is extremely rare, particularly for a large-cap company.”
Ackman also hinted at sharing further insights into his investment thesis soon, heightening anticipation in the market.
Uber’s Recent Performance and Analyst Reactions
Uber recently reported Q4 2024 earnings, showing strong bookings and revenue growth. However, the stock faced short-term pressure due to a slight miss in anticipated bookings growth and lower-than-expected adjusted EBITDA guidance for the current quarter.
Despite these concerns, Ackman’s investment underscores growing confidence in Uber’s long-term profitability and innovation strategy. The move aligns with a broader trend of major hedge funds betting on mobility tech and digital platforms.
Dara Khosrowshahi Welcomes Ackman Aboard
Uber CEO Dara Khosrowshahi responded positively to Ackman’s investment, posting on X:
“Thanks for making a bet on us and super excited to have you on board as a shareholder.”
Uber’s leadership has been focused on expanding profitability, AI-driven efficiencies, and international market growth, positioning the company for sustained success.
Market Implications and Investor Sentiment
Ackman’s stake could drive renewed institutional interest in Uber stock, especially as the company continues to strengthen its ridesharing, delivery, and freight businesses. With the 9.4% surge on Friday, analysts and investors will be watching closely for further developments and Pershing Square’s next move.
Uber remains a dominant force in the mobility sector, and with Ackman’s backing, it may signal further upside potential for long-term investors.
