Uber stock jumps 7% after Bill Ackman reveals $2.3 billion stake

Bill Ackman thinks Uber shares are a bargain. The billionaire activist investor and CEO of Pershing Square Holdings revealed Friday that his firm has built a significant position in the rideshare giant, causing the stock to jump nearly 7%.

In a post on X, Ackman said Pershing Square owns 30.3 million Uber shares, worth about $2.3 billion based on the current stock price of roughly $75, which the firm began acquiring in early January. He also said that he has been a long-term customer and admirer of the company since actor Edward Norton introduced him to the app in its early days, prompting Ackman to become a “day one investor” through a venture fund.

Now, Ackman believes the company’s stock is available on the cheap. Uber shares gained just 3% in 2024, trailing the S&P’s 25% gain, amid worries about the threat of autonomous vehicles as Waymo and Tesla rush to develop robotaxi fleets. Over the last two years, however, Uber and Waymo have announced partnerships to bring driverless ridesharing to Phoenix, Austin, and Atlanta, suggesting such vehicles are not necessarily a death knell for the business.

Source: FORTUNE