Billionaire investor Bill Ackman has made headlines by investing $2.8 billion in Uber Technologies, acquiring over 30 million shares. This strategic move reflects Ackman’s confidence in Uber’s long-term potential, as he aims to build a portfolio reminiscent of Warren Buffett’s Berkshire Hathaway.
Key Takeaways
- Bill Ackman’s Pershing Square Capital Management invested $2.8 billion in Uber, representing nearly 18% of its capital.
- Uber’s stock has surged 52% in 2025, reaching a 52-week high of $93.60.
- Ackman believes Uber is undervalued and well-managed, with significant growth potential.
- The investment aligns with Ackman’s strategy of acquiring high-quality businesses for the long term.
Ackman’s Investment Strategy
Bill Ackman, the founder of Pershing Square Capital Management, has a history of making bold investment decisions. His recent acquisition of Uber shares is part of a broader strategy to build a concentrated portfolio of high-quality companies. Ackman has expressed his admiration for Uber, stating:
"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."
This investment is not just a financial maneuver; it reflects Ackman’s belief in Uber’s potential to dominate the ride-sharing market and expand into autonomous vehicle technology.
Uber’s Recent Performance
Uber has shown impressive growth in recent months, with its stock price climbing significantly. Key highlights from Uber’s recent performance include:
- Earnings Per Share (EPS): 83 cents, exceeding Wall Street’s expectation of 50 cents.
- Revenue: $11.53 billion, a 14% increase year-over-year, although slightly below the forecast of $11.62 billion.
- Total Trips: 3 billion, an 18% increase from the previous 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%.
The Future of Uber
Uber is not just focusing on ride-sharing; it is also making significant strides in autonomous vehicle technology. The company has partnered with various firms, including Waymo, Volkswagen, and Aurora, to enhance its self-driving initiatives. In Austin, users can already hail a robotaxi through the Uber app, showcasing the company’s commitment to innovation.
Uber’s CEO, Dara Khosrowshahi, has stated that the company is on track to reach an annual run rate of 1.5 million autonomous vehicle trips. Analysts are optimistic about Uber’s future, with JP Morgan recently raising its price target for the stock to $105, citing the company’s potential in the autonomous vehicle sector.
Conclusion
Bill Ackman’s $2.8 billion investment in Uber underscores his belief in the company’s long-term growth potential. As Uber continues to innovate and expand its services, Ackman’s strategic move may prove to be a significant win for both his fund and the ride-sharing giant. Investors will be watching closely to see how this investment unfolds in the coming months and years.