Uber Stock Surges as Bill Ackman Reveals Stake

Uber Technologies Inc. (UBER) shares surged nearly 9% on Friday, February 7, following the revelation that billionaire hedge fund manager Bill Ackman had taken a significant stake in the ride-hailing giant. Ackman, the founder and CEO of Pershing Square Capital Management, disclosed on the social media platform X that his fund had acquired 30.3 million shares of Uber, worth over $2.3 billion at the current stock price. This investment represents approximately 1.4% of Uber's outstanding shares, making Pershing Square the 12th-largest shareholder, according to FactSet data.



Ackman praised Uber's management, particularly CEO Dara Khosrowshahi, for transforming the company into a highly profitable and cash-generative growth machine since joining in 2017. He described Uber as one of the best-managed and highest-quality businesses in the world, remarking that it can still be purchased at a massive discount to its intrinsic value. Ackman's bullish stance on Uber comes despite the company's recent earnings miss and soft guidance, which led to a 7.5% drop in the stock on Wednesday.



Uber's stock has been on a wild ride in recent years, surging 149% in 2023 and continuing to rack up gains in early 2024. However, it experienced a sharp pullback at the end of last year as investors worried about competition in the race to develop robotaxi technology. The stock ended 2024 roughly flat but has seen a 25% increase in 2025, driven by Ackman's investment and positive outlook.

Ackman's endorsement of Uber is a significant vote of confidence in the company's long-term prospects. His investment and positive outlook signal his belief in Uber's ability to overcome short-term market volatility and continue growing as a successful business. Ackman's track record as a successful investor, including his recent appearance on LCH Investments' annual list of the top 20 money managers of all time, further bolsters his credibility in the eyes of many investors.



Despite Ackman's bullish stance on Uber, it is essential to remember that the company still faces challenges and uncertainties. The ride-hailing and food delivery markets are competitive, and Uber must continue to innovate and adapt to maintain its market position. Additionally, regulatory pressures and potential changes in consumer behavior could impact Uber's business model and financial performance.

In conclusion, Uber's stock surged following Bill Ackman's revelation of his significant stake in the company. Ackman's praise for Uber's management and his bullish outlook on the company's long-term prospects have bolstered investor confidence in the ride-hailing giant. However, investors should remain cautious and monitor Uber's performance closely, as the company still faces challenges and uncertainties in the competitive ride-hailing and food delivery markets.