Billionaire Bill Ackman Has Nearly 20% of His Hedge Fund in 1 Growth Stock That's Up 44% in 2025

Bill Ackman's Pershing Square Capital Management has a significant 18.5% stake ($2.2 billion as of March 31) in Uber Technologies, making it the fund's largest holding. Ackman was impressed by Uber's strong fundamentals, including Q1 revenue growth of 14% and a shift to over $1.2 billion in operating income, driven by growth in both mobility and delivery segments and management expects adjusted EBITDA to increase at a "high 30s% to 40%" compound annual rate between 2024 and 2027; Uber's network effect and competitive positioning in the autonomous vehicle space contribute to its reasonable valuation with a forward P/E ratio of 23.5.

Analysis

Bill Ackman's Pershing Square Capital Management has established Uber Technologies (UBER) as its largest holding, constituting 18.5% of its fund with a $2.2 billion market value as of March 31, signaling strong conviction from a prominent investor. This significant position is underpinned by Uber's robust fundamental performance, highlighted by a 14% year-over-year revenue increase in Q1, driven by double-digit gross booking gains in both its mobility and delivery segments. The company has achieved a notable financial turnaround, generating over $1.2 billion in operating income in the first quarter, a stark improvement from the $1 billion operating loss reported in Q1 2019. Looking ahead, Uber's management projects adjusted EBITDA to grow at a compound annual rate in the high 30s% to 40% range between 2024 and 2027. Uber's competitive strength is further enhanced by its powerful network effect and strategic positioning to benefit from autonomous vehicle technology through capital-light partnerships. Despite a significant stock appreciation, with a 44% increase in 2025 and 109% since June 2023, Uber's valuation remains reasonable at a forward price-to-earnings ratio of 23.5, suggesting continued investment appeal based on its growth trajectory and improving profitability.

Key Decisions for Investors

• Given Uber's strong Q1 revenue growth, significant improvement in operating income, and positive management outlook for EBITDA, investors may consider the stock a compelling opportunity, particularly noting its reasonable forward P/E ratio despite recent price surges.
• Investors should monitor Uber's execution on its projected high 30s% to 40% adjusted EBITDA CAGR through 2027 and its ability to leverage its network effect for sustained growth in both mobility and delivery segments.
• The strategic positioning in the autonomous vehicle space presents a long-term growth catalyst, and progress in these partnerships should be watched closely as an indicator of future value creation.