The Stock of Uber Has Had Its Best Two-Day Run Since 2023. The Reasons Why Bill Ackman is a Believer

Uber Technologies Inc.’s stock is enjoying a strong rebound following the revelation that billionaire investor Bill Ackman’s Pershing Square investment fund has acquired a significant stake in the ride-hailing giant. The fund now holds 30.3 million shares of Uber, signaling Ackman’s confidence in the company’s growth potential.

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Ackman shared his optimistic outlook on Uber in a post on X (formerly known as Twitter), stating, “We believe that Uber is one of the best managed and highest quality businesses in the world.” He highlighted that despite the company’s impressive growth, its stock remains available at what he considers a substantial discount to its intrinsic value.

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Ackman also praised Uber’s Chief Executive Officer, Dara Khosrowshahi, for his leadership. “Dara has done a superb job in transforming the company into a highly profitable and cash-generative growth machine,” Ackman wrote. Pershing Square began accumulating its Uber shares in early January, marking a strategic investment move as the company continues to evolve beyond its ride-hailing roots.

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Based on Uber’s most recent quarterly filing, Pershing’s 30.3 million shares represent roughly 1.4% of the company’s outstanding shares. This sizable stake positions Pershing Square as the 12th-largest shareholder of Uber, according to data from FactSet.

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The announcement of Pershing Square’s investment has had an immediate impact on Uber’s stock performance. Despite a dip following its earnings report earlier in the week—triggered by concerns over booking trends—the stock surged 8% in Friday’s afternoon trading session. Over the past two trading days, Uber’s shares have jumped 17.2%, marking their best two-day rally since a 17.6% gain that concluded on May 2, 2023.

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Uber’s stock has experienced significant volatility in recent years. In 2023, it soared by 149%, fueled by strong earnings and growing investor confidence in the company’s profitability trajectory. The upward trend continued into the early part of 2024. However, a sharp pullback occurred toward the end of the year as market participants grew wary of intensifying competition in the race to develop autonomous vehicle technology, particularly robotaxis. As a result, Uber’s stock ended 2024 roughly flat, reflecting investor uncertainty despite the company’s operational improvements.

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The endorsement from Ackman, a well-known figure in the investing world, has provided a fresh wave of optimism for Uber shareholders. Ackman’s track record includes impressive long-term gains, with Pershing Square making LCH Investments’ annual list of the top 20 money managers of all time. The fund ranked 20th on the list, boasting a net gain of $20.2 billion since its inception in 2004.

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However, Ackman’s investing career hasn’t been without its missteps. One of his most notable blunders was his high-profile bet against Herbalife Inc. nearly a decade ago. Ackman publicly shorted Herbalife, believing the company’s business model was unsustainable. This led to a heated feud with fellow billionaire investor Carl Icahn, who took the opposite position, betting that Herbalife’s stock would rise. The battle between the two investors played out in public, capturing headlines for years. Ultimately, Ackman exited his short position in early 2018, conceding defeat as Icahn’s bet proved more successful.

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Despite this blemish on his record, Ackman’s endorsement of Uber is being viewed as a strong vote of confidence in the company’s future prospects. Investors are hopeful that his bullish stance will attract additional interest from institutional investors, potentially driving further gains in Uber’s stock price.

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Even with the recent rally, Uber shares are still trading 12.5% below their all-time closing high of $86.34, which was reached on October 11, 2024. Nevertheless, the stock has shown resilience, climbing 25% so far in 2025. This upward momentum reflects growing investor confidence, bolstered by Ackman’s involvement and the company’s ongoing efforts to expand its services and improve profitability.

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Uber’s journey over the past few years has been marked by transformation. Under Khosrowshahi’s leadership, the company has shifted its focus from aggressive expansion at all costs to sustainable growth with a clear path to profitability. This strategic pivot has paid off, as evidenced by strong earnings reports, robust free cash flow generation, and improved operational efficiency.

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Looking ahead, Uber faces both opportunities and challenges. The company continues to invest in its core ride-hailing business while expanding its delivery and freight segments. Additionally, its ambitions in autonomous driving technology, though competitive, represent a significant growth frontier. As regulatory environments evolve and consumer behaviors shift, Uber’s ability to adapt will be key to maintaining its competitive edge.

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For now, the market’s response to Pershing Square’s investment suggests that investors are optimistic about Uber’s trajectory. Ackman’s track record of identifying undervalued companies with strong growth potential has resonated with shareholders, providing a boost to the stock during a period of heightened market volatility.

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In summary, Uber Technologies Inc. is experiencing a notable resurgence, fueled by Bill Ackman’s strategic investment through Pershing Square. His public endorsement of the company’s management and growth potential has energized investors, leading to a sharp rebound in the stock. While Uber’s past has been marked by volatility, its current momentum, combined with strong leadership and strategic focus, positions it well for continued success in the years ahead.

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