Billionaire Bill Ackman Has Nearly 20% of His Hedge Fund in 1 Growth Stock That's Up 44% in 2025

Core Insights - Bill Ackman, a prominent hedge fund manager, has made a significant investment in Uber, which constitutes 18.5% of his fund with a market value of $2.2 billion as of March 31 [1] - Uber's stock has increased by 44% in 2025, outperforming major indexes, indicating a potential investment opportunity [2] - Uber's strong fundamentals include a 14% revenue growth in Q1, driven by gains in both mobility and delivery segments [5] Financial Performance - Uber generated over $1.2 billion in operating income in the last three months, a significant improvement from a $1 billion operating loss in Q1 2019 [6] - The management team projects adjusted EBITDA to grow at a compound annual rate of "high 30s% to 40%" from 2024 to 2027 [7] - The stock has risen 109% since June 2023, reflecting strong financial performance and investor confidence [12] Competitive Positioning - Uber benefits from a powerful network effect, where increased rider usage attracts more drivers, enhancing the platform's value [9] - The rise of autonomous vehicle technology positions Uber as a valuable partner for AV firms, providing a low-risk entry into this emerging market [10] - Uber's brand recognition is significant, with its name becoming synonymous with ride-hailing, similar to other dominant companies like Google and Netflix [11] Valuation - Despite the stock's impressive performance, it trades at a forward price-to-earnings ratio of 23.5, suggesting a reasonable valuation for potential investors [13]