Hedge Fund Billionaire Ackman Reveals $2.3 Billion Stake In Uber—Stock Races To 9% Gain

Group 1 - Billionaire Bill Ackman's hedge fund, Pershing Square Capital Management, has acquired a significant stake in Uber, owning over 1% of the company, which amounts to 30.3 million shares [1][2] - Following Ackman's announcement, Uber's stock price increased nearly 3%, contributing to a total gain of 9% on that Friday, marking its highest intraday price since October 30, 2024 [2][4] - Uber's stock has risen 14% over the week, adding approximately $20 billion in market capitalization, recovering from an 8% drop after its earnings report [2][5] Group 2 - Ackman believes Uber is trading at a "massive discount to its intrinsic value," presenting a rare investment opportunity for a company of its size [3][5] - Uber's valuation metrics indicate it trades at 18.7 times its free cash flow from the last quarter, significantly lower than other tech stocks like Tesla, Palantir, and Nvidia [5] - In 2024, Uber generated$ 6.9 billion in cash, more than double the $3.4 billion generated in 2023, marking a turnaround from its previous cash burn of nearly$ 9 billion from 2019 to 2023 [5]