Billionaire investor Bill Ackman disclosed a major investment in Uber, revealing that his hedge fund, Pershing Square Capital Management, now owns 30.3 million shares of the ride-hailing giant, valued at $2.3 billion. The stake was accumulated starting in early January, and the announcement led to a significant boost in Uber’s stock price, which surged 9% on the day, reaching its highest intraday price since October 2024.
Uber’s stock has had a dramatic turnaround recently, up 14% for the week, adding roughly $20 billion in market capitalization. This recovery comes after a challenging earnings report earlier in the week that initially sent shares down by 8%, but they gained back steadily over the following trading sessions.
Ackman’s investment highlights his belief that Uber is undervalued, calling it an “extremely rare” opportunity for a company of its size. He argued that Uber’s stock trades at a “massive discount” relative to its intrinsic value, with the company now generating significant cash flow. Uber’s price-to-free-cash-flow ratio is notably low at 18.7 times, especially compared to tech stocks like Tesla, Palantir, and Nvidia, which have much higher multiples. Uber’s free cash flow doubled from $3.4 billion in 2023 to $6.9 billion in 2024, signaling a significant financial turnaround after several years of losses.
This investment is a major endorsement of Uber’s business model and its shift from years of heavy cash burn to sustainable cash generation. Ackman’s $2.3 billion stake is now one of the most high-profile bets on Uber’s continued growth.
Ackman, worth $9.3 billion according to Forbes, is known for his outspoken views and high-profile activism in finance and politics. His hedge fund, Pershing Square, manages $18.6 billion in assets, with notable stakes in companies such as Alphabet and Chipotle. Ackman has also been a vocal figure in broader political debates, including opposing certain university policies and supporting President Donald Trump in recent years.
Related topics:
What Is a Hedge Fund’s Sharpe Ratio?
Alchemy Partners Secures €1bn for Alchemy Special Opportunities Fund V
Legal & General’s Affordable Housing Fund Hits £510M After Latest Investment Round
