/Uber%20and%20Lyft%20by%20Thought%20catalog%20via%20Unsplash.jpg)
Uber Technologies (UBER) shares have gained just under 9% over the past 52 weeks, underperforming the benchmark S&P 500 Index ($SPX). However, its longer-term chart has been up and to the right, with shares up 125% over the past two years. Shares have also now rebounded more than 30% from their December low below $60 per share.
This rebound has certainly benefited investors who have continued to accumulate shares of the ride-hailing giant. One of the more notable big-named investors who has touted Uber as a holding worth considering is Bill Ackman.
Let’s dive into whether Uber is worth buying at its current levels, or if investors would be better off by waiting for a dip in 2025.
Bill Ackman Bets on Uber
In a recent post on social media platform X, Bill Ackman announced that his firm Pershing Square Capital began acquiring shares of Uber in January 2025. As of the time of his post on Feb. 7, Ackman said that he owned more than 30 million shares of UBER. This bet is not small by any means, with his position in Uber worth $2.3 billion based on current prices.
Ackman also said he was a “day-one” in Uber thanks to a “small investment” in a venture fund, although he has clearly ramped up his bet in recent months. And his thesis around this purchase is relatively simple to understand.
Ackman’s view is that Uber is a long-term holding. His perception is that that Uber is among the “best managed” and “highest quality” businesses in the world. Indeed, the quality of a management team and its underlying business model are two of the most important factors investors should consider with any single stock holding. That said, Uber’s fundamentals also back up this view.
Strong Fundamentals Point to Continued Growth Ahead
It’s one thing to claim that a company is among the best-managed and highest-quality names in its sector. But backing up these claims with data is important for most investors.
On this front, Uber’s growth has truly been something to behold, with its core ride-hailing business as well as its food delivery business delivering strong results. Zooming out past the company’s perhaps more muted 10.1% growth rate over the past year, Uber has driven a five-year revenue growth rate of more than 230%.
Looking further at Uber’s core fundamentals, it’s clear that this is a company with some impressive underlying operational strength. Any company that can produce a return on equity of more than 62% and generate a gross profit margin in excess of 22% is one that growth investors will gravitate toward.
Of course, the question is whether Uber will be able to maintain these kinds of numbers moving forward, as other companies with similar gross margins and return on equity figures like Tesla (TSLA) have seen degradation lately. But with a PEG ratio under 1x and a forward price-earnings of 30 times, this is a stock that looks reasonably (if not attractively) valued here.
Analysts See Growth Ahead
It’s impossible to know if Uber can see growth reaccelerate from here, particularly given its size. Any company with a market capitalization north of $150 billion will have a harder time growing, just due to the law of large numbers. That said, analysts tend to take the “over” in terms of where this company’s stock price will be over the next year to 18 months, with a consensus “Strong Buy” rating and a mean price target that’s more than 15% above its current price.
The Bottom Line
Uber is one of those growth stocks that’s continued to outperform in recent quarters, and investors like Bill Ackman appear intent to ride this wave higher over the mid- to long-term. We’ll have to see how long he ultimately holds onto this position, and we'll find out in future 13-F filings. But for now, this is a stock I’m going to certainly keep on my radar.
