Uber's Strong Management and Undervalued Stock Attract Hedge Fund Investment
Billionaire investor Bill Ackman's hedge fund, Pershing Square Capital Management, has acquired a substantial stake in Uber Technologies Inc., disclosing ownership of 30.3 million shares on Friday. The firm initiated its position in Uber in early January, according to Ackman's post on X.
Ackman praised Uber's exceptional management and business quality, highlighting the company's significant growth potential. He noted that Uber's current valuation represents a significant discount to its intrinsic value, creating a rare opportunity for investors.
"We believe that Uber is one of the best managed and highest quality businesses in the world," Ackman stated. "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."
Uber's stock experienced a surge of 7.5% after Ackman's announcement. Ackman indicated that Pershing Square will provide additional insights on its investment strategy for Uber in the near future.