Bill Ackman Acquires Significant Stake in Uber, Praises Management and Value
Billionaire investor Bill Ackman has unveiled a substantial investment in Uber Technologies Inc. Through his hedge fund, Pershing Square Capital Management, Ackman now holds 30.3 million shares of the ride-sharing giant.
Ackman attributes his investment to Uber's exceptional management team and believes the company's stock is significantly undervalued. He asserts that Uber's "best managed and highest quality businesses in the world" status warrants a premium valuation.
"Remarkably, it can still be purchased at a massive discount to its intrinsic value," Ackman wrote in a public statement.
The acquisition represents a strategic move for Ackman, who typically invests in companies with long-term growth potential. Uber's recent challenges, including a muted gross bookings outlook for Q1, have not deterred his confidence in the company's long-term trajectory.
"We will have more to share about our thinking on the company shortly," Ackman added, hinting at further insights into his investment thesis.
Uber has yet to comment on Ackman's statement publicly. However, its shares surged by 9.3% in New York following the disclosure, indicating investor optimism in Ackman's endorsement.
Wall Street analysts remain bullish about Uber's growth prospects, Despite recent market fluctuations. Wedbush analysts have emphasized that the stock's weakness is "unwarranted for a company demonstrating strong fundamentals."
Uber's CFO, Prashanth Mahendra-Rajah, has expressed confidence in the company's undervalued status and indicated plans to actively buy back shares.