Billionaire Bill Ackman Just Bought $2.3 Billion Worth of This Incredible Growth Stock, Which Could Make It His Hedge Fund's Biggest Bet

Core Insights - Bill Ackman has significantly increased his investment in Uber Technologies, acquiring 30.3 million shares valued at over $2.3 billion, potentially making it Pershing Square's largest equity holding [2][3] - Ackman praises Uber's CEO Dara Khosrowshahi for transforming the company into a profitable entity, with operating cash flow rising from a loss of$1.5 billion in 2017 to over $7 billion in 2024 [3][6] - Uber's valuation appears attractive, trading at an enterprise value of 0.9 times its 2024 gross bookings, with expected gross bookings growth of 18% in Q1 2025 [5][6] Company Performance - Since Khosrowshahi's leadership began in 2017, Uber's monthly active platform consumers have increased from 62 million to 171 million by the end of 2024, enhancing its market position [8] - The company has successfully integrated Uber Eats into its main app and made strategic acquisitions in delivery and logistics, further solidifying its competitive advantage [7][8] - Uber has gained market share from smaller rival Lyft, benefiting from its size and operational scale [9] Future Growth Potential - Ackman believes Uber is still undervalued and has significant growth potential, with expectations of continued EBITDA growth of 30% to 37% in Q1 2025 [4][5] - The rise of autonomous vehicles (AVs) may present opportunities for Uber, as its established ride-hailing platform could be essential for AV companies like Waymo seeking to enter new markets [10][11] - Uber's strong market position may allow it to maintain and enhance its valuation as the industry evolves towards more AV integration [11]