Shares of Uber Surge After Billionaire Investor Bill Ackman Reveals Massive Stake

Core Viewpoint - Uber Technologies' shares rose nearly 9% following the announcement that billionaire investor Bill Ackman's fund, Pershing Square Capital Management, has acquired a stake valued at over $2 billion, making it the largest position in Pershing's portfolio [1][2]. Group 1: Investment Details - Ackman's fund began building its position in Uber in early January, currently holding 30.3 million shares, equating to over$2.3 billion based on a share price of $75.58 [2]. - Prior to this, Pershing's largest position was in Brookfield Corp, valued at over$1.7 billion [2]. Group 2: Investor Sentiment - Ackman has expressed a long-standing belief in Uber, stating it is one of the best-managed and highest-quality businesses globally, available at a significant discount to its intrinsic value [3]. - Despite past struggles attributed to "erratic management," Uber has become profitable under CEO Dara Khosrowshahi's leadership since 2017, generating substantial cash flow [4]. Group 3: Market Performance - Uber's stock has increased approximately 17% this week, despite fourth-quarter earnings that did not initially impress; analysts noted stronger-than-expected revenue and bookings [5]. - The stock trades at about 23 times forward earnings and is positioned to play a significant role in the autonomous vehicle market, supported by impressive financial metrics such as growing revenue, free cash flow, and profits [6].