Bill Ackman's Pershing Square Capital Management has disclosed a new 30.3 million share stake in Uber, valuing the investment at $2.3 billion. Ackman, a known admirer of Uber's management and growth potential, believes the company is undervalued and offers a rare opportunity for investors.
Bill Ackman, CEO of Pershing Square Capital Management, speaking at the Delivering Alpha conference in New York City on Sept. 28, 2023.In a post on X, the hedge fund manager said his fund began buying Uber shares in early January and has amassed 30.3 million shares, worth $2.3 billion based on the stock's current level around $75 per share.
"We believe that Uber is one of the best managed and highest quality businesses in the world," Ackman said in the post. "Remarkably, it can still be purchased at a massive discount to its intrinsic value. This favorable combination of attributes is extremely rare, particularly for a large cap company."
Shares of Uber surged more than 8% on Friday. The stock had taken a hit on Wednesday, falling 7.5%, after the ride-hailing companyPershing Square's hedge fund has a concentrated portfolio with 10 stock holdings including the new Uber stake. As of the end of September, Pershing's biggest holding was Google's parent
Ackman said he was a day one investor in Uber through a small investment in a venture fund, and he praised CEO Dara Khosrowshahi's efforts to drive growth. "I have been a long-term customer and admirer of Uber beginning when Edward Norton showed me the app in its early days," Ackman said. "Since he joined the company in 2017, Dara Khosrowshahi CEO has done a superb job in transforming the company into a highly profitable and cash-generative growth machine.
INVESTING UBER BILL ACKMAN PERSHING SQUARE STOCK MARKET
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