Bill Ackman, the billionaire investor behind Pershing Square Capital Management, has a history of making smart bets. Over the last five years, his hedge fund has returned 191%, nearly doubling the S&P 500's 102% gain in the same period, according to Reuters.
Ackman last month revealed that Pershing Square had built a $2.3 billion stake in Uber Technologies UBER, acquiring 30.3 million shares.
He described Uber as "one of the best-managed and highest-quality businesses in the world" and said it was still trading at a massive discount to its true value.
Don't Miss:
- Dogecoin millionaires are increasing – investors with $1M+ in DOGE revealed!
- Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.26/share!
Under CEO Dara Khosrowshahi, who took over in 2017, Uber has transformed into a profitable and cash-generating company. In the last quarter of 2024, revenue climbed 20% year-over-year to $11.96 billion, and adjusted earnings before interest, taxes, depreciation, and amortization jumped 44% to $1.8 billion.
More people are using Uber than ever before, with 171 million monthly active users, a 14% increase from the previous year. The platform handled 3.1 billion trips in just three months, up 18% year-over-year, Uber said in its latest earning report on Feb. 5.
But Uber isn't just about rides and food delivery anymore. The company is moving into autonomous vehicles and has teamed up with Alphabet's GOOG Waymo to integrate self-driving technology. Their partnership started in Phoenix in 2023 and is expected to begin in Austin and Atlanta early this year.
Trending: Over the last five years, the price of gold has increased by approximately 83% — Investors like Bill O’Reilly and Rudy Giuliani are using this platform to create customized gold IRAs to help shield their savings from inflation and economic turbulence.
Kosrowshahi recently told CNBC that autonomous driving in the U.S. alone is a trillion-dollar opportunity and that Uber is in a prime position to be the go-to-market partner for AV providers.
Uber is also making a serious push into advertising. With its huge amount of user data, the company can help brands target consumers based on their travel and delivery habits, much like Amazon AMZN does with its marketplace.
Piper Sandler analyst Thomas Champion said in August he believes Uber's advertising business could bring in $5 billion by 2027, which would create another high-margin revenue stream alongside ride-sharing and food delivery.
See Also: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.
Despite these moves, Uber's stock is still trading at what some see as a discount. Free cash flow surged 122% in its most recent quarter to $1.7 billion, yet the stock is currently valued at 23 times free cash flow—below its one-year average of 32 times and not far from the December 2024 low of 19 times, Economic Times said.
Given Uber's expected annual adjusted EBITDA growth in the high-30% range over the next three years, some investors see this as a buying opportunity.
Read Next:
- ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.26/share with a $1000 minimum.
- If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
