Core Insights - Hedge fund manager Bill Ackman has disclosed a position in Uber Technologies, indicating a strategic investment in a leading brand with growth potential at a reasonable valuation [1][2] - The investment may reflect a strategy similar to Ackman's past success with Wendy's and its subsidiary Tim Hortons, where he identified hidden value within a larger business [3][7] Company Analysis - Uber is not just a ride-hailing platform; it has expanded into delivery services for food, alcohol, and consumer goods, indicating a broader market presence [8] - Uber holds significant stakes in other businesses, including Grab Holdings, which operates in delivery, mobility, and financial services across Southeast Asia [9] - Grab has shown notable improvements, with a 39% increase in share price over the past year, contrasting with Uber's 8% gain, suggesting that Uber's stake in Grab may be undervalued [11][12] Strategic Implications - The market may not be recognizing the value of Uber's equity stakes in other businesses, which could be seen as mispriced assets, similar to the hidden value identified in the Wendy's-Tim Hortons case [13] - There is potential for Uber's management to consider exiting its position in Grab, which could provide capital for reinvestment into growth areas, particularly in autonomous driving partnerships [14]

Bill Ackman is the founder and CEO of Pershing Square, a hedge fund with around $12.9 billion in assets under management. That includes billions of dollars invested in popular stocks like Alphabet, Nike, and Chipotle Mexican Grill.On Friday, Feb. 7, Ackman took to social media platform X (formerly Twitter) to reveal that Pershing Square has accumulated 30.3 million shares in Uber Technologies (UBER 3.12%), which operates the world's largest ride-hailing platform. Based on Uber's stock price of $74.60 at the ...

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in UBER over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking ...

Core Viewpoint - Hedge fund manager Bill Ackman has acquired a $2.3 billion stake in Uber, indicating strong confidence in the company's long-term potential [1] Group 1: Investment Details - Ackman's investment in Uber is characterized as a significant and concentrated bet, reflecting his strategy as a long-term investor [1] Group 2: Market Context - The announcement of Ackman's stake comes at a time when Uber is navigating various market challenges and opportunities, suggesting that he sees potential for growth [1]

Hedge fund manager Bill Ackman took to social media to reveal the newest position in his portfolio.On Friday, Feb. 7, hedge fund manager Bill Ackman took to social media platform X (formerly Twitter) to reveal his firm's newest stock position. This is quite unusual, as investors typically need to wait until institutional investors publish a Form 13F following the end of a quarter to see which stocks they recently bought and sold.Below, I'm going to analyze Ackman's latest position and make the case for why ...

Uber Technologies (UBER -2.14%) recently reported mixed financial results for the fourth quarter of 2024. Revenue of just under $12 billion came in ahead of Wall Street expectations. But adjusted earnings per share of $0.23 were well below. Nonetheless, shares have been a major winner for investors -- up 125% just in the past 24 months. You're probably wondering if it's time to take a ride with Uber. Could this transportation-as-a-service stock be your ticket to becoming a millionaire by 2035?Well positione ...

Billionaire hedge fund manager Bill Ackman recently revealed his latest multibillion-dollar investment: mobility technology leader Uber (UBER -2.14%). According to a social media post by Ackman, Pershing Square Capital Management (the hedge fund he oversees) owns 30.3 million shares of the company.At Uber's current share price, Ackman's investment is worth roughly $2.4 billion, which is one of the largest investments Pershing has ever made.In the same post announcing the investment, Ackman wrote, "[W]e beli ...

Core Viewpoint - The market is beginning to recognize the hidden value in Uber stock, which has been rated as a top stock to buy for 2025 [1] Company Summary - Uber has been identified as a strong investment opportunity for 2025, indicating positive market sentiment towards the company's future performance [1]

Core Viewpoint - Uber Technologies experienced significant stock volatility following its earnings report, with initial declines due to a muted growth outlook and long-term concerns about autonomy, but later recovery driven by hedge fund manager Bill Ackman's substantial investment in the company [1][2]. Financial Performance - Uber's earnings report for 2024 showed strong metrics, including operating income of $2.799 billion (up 152%), net income of $9.846 billion, adjusted EBITDA of $6.484 billion (up 60%), and free cash flow of $6.895 billion (up 105%) [3][4]. - Despite appearing cheap with a P/E ratio of approximately 16, the true valuation may be higher when considering after-tax income from operations, which is significantly lower than other reported metrics [3][4][12]. Valuation Concerns - The reported net income included a one-time $5.8 billion tax benefit, which will not recur, reducing pre-tax income to $4.13 billion for 2024 [5]. - Uber's interest income from cash holdings is substantial, projected at $1.85 billion for 2024, which constituted 45% of pre-tax revenue last year, raising concerns about sustainability if interest rates decline [6][7]. - Adjusted EBITDA and free cash flow figures include significant add-backs for stock-based compensation ($1.8 billion) and insurance reserve charges ($1.1 billion), which are real costs that should be discounted by investors [8][10]. Pricing and Insurance Risks - Uber's revenue growth has been partly driven by significant price increases (83% from 2018 to 2022), which may not be sustainable as competition increases and customers seek alternatives [14][16]. - Rising insurance costs, projected to increase at a high-single-digit rate, could pressure Uber to either absorb costs or raise prices further, potentially impacting customer retention [16][17]. Autonomy Risks - The emergence of autonomous ride-hailing services from competitors like Waymo and Tesla poses a threat to Uber's market position, with Waymo already capturing a 22% market share in its service areas [18][20]. - Although Uber is partnering with Waymo for fleet management, the financial implications of this partnership remain unclear, particularly regarding the economics of self-driving technology and potential commission fees [22][24][25]. - The uncertainty surrounding the long-term economics of autonomous vehicles could significantly affect Uber's valuation and market strategy in the coming years [26]. Conclusion - While Uber may be a reasonably priced market leader, the complexities in its valuation, pricing power, insurance costs, and the threat of autonomous competition suggest it may not be the bargain that some investors perceive [27].

The Q4 earnings season is well underway, and so far, big tech stocks have continued to pump out substantial gains. Uber (NYSE: UBER ), the rideshare giant, has been one of the recent big winners, with the company demonstrating that its bookingsWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regula ...