Uber Stock Surges For Second Day As Ackman Announces $2 Billion Stake

Uber Technologies, Inc. (NYSE: UBER) shares surged for the second consecutive day on Friday, February 7, 2025, following billionaire investor Bill Ackman's announcement of a $2 billion stake in the ride-hailing giant. Ackman, the founder and CEO of Pershing Square Capital Management, revealed that his fund had been buying Uber shares since early January and now owns approximately 1.4% of outstanding shares. The news sent Uber's stock price soaring nearly 9% on Friday, building on the previous day's 6% gain.

Ackman's investment in Uber is a significant vote of confidence in the company's future prospects, given his track record of successful investments in other prominent companies such as Chipotle Mexican Grill and Brookfield Asset Management. In a post on the social media platform X (formerly Twitter), Ackman praised 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. He also highlighted the company's strong management team, led by CEO Dara Khosrowshahi, who has transformed Uber into a high-growth, high-margin business since taking the helm in 2017.

Uber's stock price has been volatile in recent months, but the company's fundamentals remain strong. In its fourth-quarter earnings report, released earlier this week, Uber reported revenue growth of 29% year-over-year and adjusted EBITDA of $761 million, surpassing Wall Street estimates. The company also reiterated its guidance for adjusted EBITDA of $5 billion in 2024, signaling its commitment to achieving profitability. Uber's growth in its mobility segment, which includes ride-hailing and micromobility services, has been particularly impressive, with gross bookings growth of 40% in the first quarter of 2025.

Ackman's investment in Uber comes at a time when the company is facing increased competition from rivals such as Lyft and DiDi, as well as regulatory challenges in various markets. However, Uber's strong financial performance and growth prospects have attracted the attention of prominent investors like Ackman. As Uber continues to expand its services and enter new markets, its stock price is likely to remain volatile, but the company's fundamentals and long-term growth prospects appear solid.




In conclusion, Bill Ackman's $2 billion stake in Uber is a strong endorsement of the company's future prospects, and his investment has sent the stock price surging for the second consecutive day. Despite facing competition and regulatory challenges, Uber's strong financial performance and growth prospects have attracted the attention of prominent investors. As Uber continues to expand its services and enter new markets, its stock price is likely to remain volatile, but the company's fundamentals and long-term growth prospects appear solid. Investors should closely monitor Uber's progress and consider the potential impact of Ackman's involvement on the company's decision-making process and corporate governance.