Uber Stock Surges on Ackman's Investment and Autonomous Vehicle Hopes

Uber Technologies, Inc. (NYSE: UBER) shares were on the rise today, climbing 5.4% at 2:40 p.m. EST, as investors reacted to billionaire Bill Ackman's announcement of a significant investment in the company and the potential of autonomous vehicles in the ride-hailing industry. Ackman, the founder of Pershing Square Capital Management, revealed that he has invested more than $2 billion in Uber stock, praising the company as "one of the best-managed and highest-quality businesses in the world." This endorsement, coupled with the promise of autonomous vehicles, has boosted investor confidence in Uber's future prospects.



Uber's stock price increase today aligns with the company's long-term strategic goals of building a strong reputation and attracting investment to support its growth and innovation. The company's recent partnership with Waymo, announced in February 2025, has prepared it well for the transition to autonomous vehicles. This partnership allows Uber to leverage Waymo's advanced technology and expertise in self-driving cars, which can help the company stay competitive in the rapidly evolving mobility market. Additionally, Uber's announcement of offering autonomous vehicle rides in Austin, Texas, in March 2025, further solidifies the company's commitment to and progress in the development of autonomous vehicle technology.

However, Lyft's announcement of launching robotaxis in 2026 in partnership with Mobileye has raised concerns among investors about the potential threat to Uber's market share. In the past, Uber stock has moved in response to developments with Tesla's robotaxi, indicating that investors are wary of the threat posed by competitors in the autonomous vehicle space. Lyft's announcement makes it clearer that Tesla won't dominate the robotaxi market without a fight, and that other companies, such as Lyft, are also investing in and developing autonomous vehicle technology.

Despite this potential threat, Uber's strong Q4 2024 earnings and guidance for Q1 2025 have contributed to its stock price trajectory. The company reported that Gross Bookings grew 18% year-over-year (YoY) to $44.2 billion, with Mobility Gross Bookings up 18% YoY and Delivery Gross Bookings up 18% YoY. Revenue grew 20% YoY to $12.0 billion, with combined Mobility and Delivery revenue up 23% YoY. Income from operations was $770 million, up $118 million YoY, and Adjusted EBITDA grew 44% YoY to $1.8 billion. Net cash provided by operating activities was $1.8 billion, and free cash flow was $1.7 billion.

Uber's positive guidance for Q1 2025 also contributed to its stock price increase. The company expects Gross Bookings growth of 17% to 21% YoY on a constant currency basis, translating to reported Gross Bookings of $42.0 billion to $43.5 billion. Adjusted EBITDA is expected to be $1.79 billion to $1.89 billion, representing 30% to 37% YoY growth.

In conclusion, Uber's stock price increase today was driven by Bill Ackman's investment and praise for the company, as well as the promise of autonomous vehicles in the ride-hailing industry. The company's strong Q4 2024 earnings and positive guidance for Q1 2025 have also contributed to its stock price trajectory. While the potential threat from competitors in the autonomous vehicle space remains a concern, Uber's progress in the development of autonomous vehicle technology and its strong financial performance have boosted investor confidence in the company's future prospects.