Uber Stock Surges as Bill Ackman Reveals $2.3B Stake

Uber Technologies Inc. (UBER) shares surged nearly 10% on Friday, February 7, 2025, following the revelation that billionaire investor Bill Ackman had taken a significant stake in the ride-sharing giant. Ackman's investment fund, Pershing Square Capital Management, disclosed that it had acquired a 1.4% ownership stake in Uber, valued at over $2.3 billion. This news sent Uber's stock price soaring to a three-month high, reaching $76.76 per share.

Bill Ackman, known for his activist investing approach, praised Uber's management and business model in a post on social media platform X. He highlighted that Uber is one of the best-managed and highest-quality businesses in the world, and its stock is currently undervalued. Ackman also commended Uber CEO Dara Khosrowshahi for transforming the company into a highly profitable and cash-generative growth machine since taking over in 2017.

Uber's strong financial performance and growth potential have attracted Ackman's investment. In the fourth quarter of 2024, Uber reported a 20% jump in revenue to $11.96 billion, although its adjusted net profit of 23 cents missed analyst expectations. Despite this, analysts highlighted stronger-than-expected revenue and bookings, indicating the company's financial health and growth potential.

Uber's diversified revenue streams, including ride-hailing, food delivery (Uber Eats), and trucking (Uber Freight), contribute to its long-term growth potential. The company's extensive global presence, with operations in over 10,500 cities across 70 countries, also supports its market leadership and dominance.



Uber's management has successfully addressed past challenges and improved the company's profitability and cash flow. Under CEO Dara Khosrowshahi's leadership, Uber has expanded into new markets and services, adapted to regulatory challenges, and focused on core businesses. These strategic moves have helped Uber generate significant revenue and profits, as well as growing free cash flow.



Ackman's investment in Uber is a testament to the company's strong business model, financials, and long-term growth potential. Despite his cautious approach to high-growth, volatile sectors and high valuations, Ackman sees Uber as an attractive investment opportunity. The company's proven track record, strong management, diversified revenue streams, market leadership, undervalued stock, and potential in autonomous vehicles make it an appealing investment for Ackman.

In conclusion, Uber's stock surged following Bill Ackman's revelation of a $2.3 billion stake in the company. Ackman's investment highlights Uber's strong business model, financials, and long-term growth potential. Despite his cautious approach to high-growth, volatile sectors and high valuations, Ackman views Uber as an attractive investment opportunity. The company's proven track record, strong management, diversified revenue streams, market leadership, undervalued stock, and potential in autonomous vehicles contribute to its appeal as an investment.