Activist investor Bill Ackman has acquired a stake worth more than $2.3 billion in Uber Technologies, a move he claims offers a rare opportunity to purchase shares at a “massive discount.” Ackman, the founder of hedge fund Pershing Square Capital Management, expressed his belief that Uber is “one of the best managed and highest quality businesses in the world” despite recent challenges. This significant investment comes after Uber reported weaker-than-expected earnings for the fourth quarter of 2024, with the stock surging more than 9% following the announcement, pushing the company’s market value beyond $160 billion.
In a post on social media platform X (formerly Twitter), Ackman detailed his excitement about the company’s long-term growth prospects, particularly in autonomous vehicle technology. He sees the integration of self-driving cars as a potential game-changer for Uber, describing it as a “$1 trillion-plus opportunity.” This optimism comes in the wake of Uber’s plans to incorporate autonomous vehicles into its fleet, including a deal with Alphabet’s subsidiary Waymo and the opening of a self-driving vehicle waiting list in Austin, Texas.
Ackman’s announcement underscores his confidence in Uber’s future, despite the company’s turbulent past. He acknowledged the company’s “erratic management” over the years but praised current CEO Dara Khosrowshahi for steering the company toward profitability. Khosrowshahi took the reins from Uber’s controversial co-founder Travis Kalanick in 2017 after a series of scandals, including allegations of mishandling workplace harassment claims. Under Khosrowshahi’s leadership, Uber posted its first annual operating profit in 2024, marking a significant milestone for the company.
For Ackman, the timing appears strategic. Pershing Square began purchasing Uber shares in January, now holding more than 30 million shares. Ackman’s initial involvement with Uber dates back to the company’s early days around its founding in 2009, where he took a small stake via a venture capital fund. Despite the company’s rocky start, including a disappointing IPO in 2019, Ackman sees Uber’s recent strides toward profitability and its potential in autonomous technology as solid reasons for his renewed investment.
Financial Times reported on Ackman’s new stake and his bullish stance on the company, noting his view that Uber remains undervalued in comparison to its intrinsic worth, especially given its significant growth prospects. While Uber navigates the ongoing challenges of its evolving business model, Ackman’s investment signals strong confidence in its ability to thrive in the coming years.
