Shares of Uber Technologies Inc. surged more than 8% on Friday following the revelation that hedge fund manager Bill Ackman has been accumulating a substantial stake in the company. Through his firm, Pershing Square Capital Management, Ackman has acquired 30.3 million shares of Uber, now valued at approximately $2.3 billion based on the current stock price of around $75 per share.
Ackman's hedge fund, known for its concentrated portfolio, now holds Uber as one of its ten stock investments. He began purchasing shares in early January, demonstrating his confidence in Uber's long-term potential. Despite a rocky start to the week with a 7.5% drop on Wednesday due to soft guidance and an earnings miss, Uber's stock has rallied about 25% in 2025, recovering from a disappointing 2024 where shares dipped by 2%.
Ackman's endorsement of Uber highlights his belief in the company's management and business quality. He emphasized that the stock is still undervalued despite its recent gains.
"Remarkably, it can still be purchased at a massive discount to its intrinsic value."
– Bill Ackman
Uber’s inclusion in Pershing Square's portfolio underscores the hedge fund's strategy of investing in high-quality businesses poised for growth. The fund's focused approach has led to significant positions in select companies, with Uber now becoming one of its key holdings.
The recent surge in Uber's stock price reflects renewed investor confidence spurred by Ackman's involvement. The stock's movement also suggests optimism about the company's future prospects, despite the recent setbacks in guidance and earnings.