Billionaire Bill Ackman buys $2.3 billion of beat-down…

Billionaire Bill Ackman buys $2.3 billion of beat-down tech stock

Have billionaires ever called an Uber?

Maybe Bill Ackman has. He said he has been "a long-term customer and admirer of Uber beginning when Edward Norton showed me the app in its early days,"

"I was also fortunate to be a day-one investor in the company through a small investment in a venture fund," the billionaire wrote on X.

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Ackman said he began purchasing Uber (UBER) shares in January and now owns 30.3 million shares, according to his post on Feb 7 .

That chunk of stocks is worth roughly $2.3 billion. The investment in Uber would position Ackman among the 15 largest shareholders of the ride-hailing company.

"We believe that Uber is one of the best managed and highest quality businesses in the world," Ackman said.

"Remarkably, it can still be purchased at a massive discount to its intrinsic value. This favorable combination of attributes is extremely rare, particularly for a large-cap company."

Ackman indeed bought the shares at a relatively low point. He started buying in January after the company had fallen from its peak last October.

Uber lost 7.6% and rallied 8.6% on Feb. 6 following the earnings release. It surged another 6.6% on Feb. 7 after Ackman's disclosure.

Bill Ackman has a highly concentrated portfolio, with stakes in only 8 to 12 stocks at a time. The billionaire investor recently disclosed a new position in Uber.
Sylvain Gaboury/Getty Images

What stocks does Ackman invest in?

Ackman is the founder and CEO of Pershing Square Capital Management, a hedge fund management company.

He was known as an activist investor for years. One of his most famous investments was the Canadian Pacific Railway. Between 2011 and 2016, he pushed for major changes in the company's management and operations and profited roughly $2.6 billion. However, he also had an epic loss of over $1 billion in a short position on Herbalife in 2018.

In 2022, Ackman said he had “permanently retired” from activist short-selling, which he described as the “noisiest form of activism.”

Ackman has a highly concentrated portfolio, with stakes in only 8 to 12 stocks at a time.

As of Sep. 30, 2024, his holdings include Brookfield Corporation BN, Hilton (HLT) , Chipotle (CMG) , Restaurant Brands (QSR) , Howard Hughes (HHH) , Nike (NKE) , Canadian Pacific Kansas City (CP) , Alphabet (GOOGL) , and Seaport Entertainment (SEG) .

His top three holdings—Brookfield, Hilton, and Chipotle—account for approximately 40% of his portfolio.

In 2024, Ackman launched Pershing Square USA, Ltd, a U.S. closed-ended fund. However, he canceled the IPO just days before its planned debut on the New York Stock Exchange due to insufficient demand.

Uber reports “strongest quarter ever”

Uber went public in May 2019, launching one of the largest IPOs in history with an initial share price of $45.

Then, as Uber expanded its services and worked on profitability, the stock began to rally in mid-2022. However, it stagnated in 2024 due to slower-than-expected bookings growth and rising competition in the ride-hailing and food delivery markets.

"While a great business, Uber suffered from erratic management. Since he joined the company in 2017, Dara Khosrowshahi CEO has done a superb job in transforming the company into a highly profitable and cash-generative growth machine," Ackman wrote.

Uber stock lost 2.03% in 2024 but has gained 30% year-to-date.

On Feb. 5, the ride-hailing company reported its “strongest quarter ever,” according to Khosrowshahi.

“Our performance has been powered by rapid innovation and execution across multiple priorities, including the massive opportunity presented by autonomous vehicles,” Khosrowshahi said in a statement.

However, the company offered soft guidance, which caused its stock to fall 7.6% on its earnings day.

The company reported $44.2 billion in gross bookings for the quarter, up 18% from a year ago and topping the $43.49 billion expected by analysts.

More 2025 stock market forecasts

Uber expects gross bookings between $42 billion to $43.5 billion for the first quarter, falling short of Street estimates of $43.51 billion, according to StreetAccount.

The stock closed at $78.63 on Feb. 7.

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