Billionaire investor Bill Ackman has made headlines with his recent $2.8 billion investment in Uber Technologies, acquiring over 30 million shares of the ride-sharing giant. This strategic move reflects Ackman’s confidence in Uber’s long-term potential and aligns with his investment philosophy of acquiring high-quality businesses at attractive valuations.
Key Takeaways
- Bill Ackman invests $2.8 billion in Uber, acquiring over 30 million shares.
- Ackman believes Uber is undervalued and well-managed.
- Uber’s stock has surged 52% in 2025, driven by strong earnings and growth in autonomous vehicle initiatives.
Ackman’s Investment Philosophy
Bill Ackman, the founder of Pershing Square Capital Management, has a history of making bold investment decisions. Inspired by legendary investor Warren Buffett, Ackman aims to build a portfolio similar to Berkshire Hathaway, focusing on long-term value creation.
In his recent 13F filing, Ackman revealed that nearly 18% of Pershing Square’s capital is now invested in Uber. He stated, "We believe that Uber is one of the best managed and highest quality businesses in the world. Remarkably, it can still be purchased at a massive discount to its intrinsic value."
Uber’s Recent Performance
Uber’s stock has seen significant growth, with a 52% increase in 2025 alone. The company recently reported first-quarter earnings that exceeded Wall Street expectations:
- Earnings Per Share (EPS): 83 cents (expected: 50 cents)
- Revenue: $11.53 billion (up 14% year-over-year)
- Total Trips: 3 billion (up 18% year-over-year)
Looking ahead, Uber anticipates second-quarter gross bookings between $45.75 billion and $47.25 billion, indicating a year-over-year increase of 16% to 20%. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to grow by 29% to 35%.
Focus on Autonomous Vehicles
Uber is also making strides in the autonomous vehicle sector, partnering with companies like Waymo and Volkswagen to enhance its self-driving technology. The company has already reached an annual run rate of 1.5 million autonomous vehicle trips in Austin, showcasing its commitment to innovation in the transportation industry.
Market Reactions and Future Outlook
Following Ackman’s investment announcement, Uber’s stock price has been positively impacted, reaching a 52-week high of $93.60. Analysts have responded favorably, with JP Morgan raising its price target for Uber from $92 to $105, citing the company’s potential in the autonomous vehicle market.
As Ackman continues to build his portfolio, his investment in Uber signals a strong belief in the company’s future growth and its ability to navigate the evolving landscape of the tech industry. Investors will be watching closely to see how this bold move plays out in the coming months.