Billionaire Bill Ackman Has 21% of His Hedge Fund's $13.7 Billion Portfolio Invested in Just 1 Stock

Bill Ackman's Pershing Square Capital Management has allocated 21% of its fund to Uber Technologies (UBER), betting on the company's strong marketplace model, network effects, and dominant competitive position. Uber has achieved profitability, reporting $1.5 billion in Q2 operating income, an 82% year-over-year increase, with management forecasting adjusted EBITDA CAGR in the high 30s to 40% through 2027. Despite a 57% stock rally in 2025, Pershing Square views Uber as reasonably valued with a forward P/E of 23.2, comparable to the S&P 500, positioning it as an attractive growth investment.

Analysis

Bill Ackman's Pershing Square Capital Management has allocated a significant 21% of its $13.7 billion fund to Uber Technologies (UBER), signaling high conviction in the company's long-term prospects. This substantial position is predicated on Uber's robust marketplace model, which effectively aggregates fragmented supply and demand, fostering a powerful network effect. The platform's dominant competitive position is further evidenced by major brands like McDonald's and Yum! Brands' Taco Bell utilizing its app.

Uber has successfully transitioned to profitability, reporting a Q2 operating income of $1.5 billion, an 82% year-over-year increase from a prior-year loss. This financial turnaround is attributed to CEO Dara Khosrowshahi's focus on operational efficiency and the scalable nature of Uber's business model, which generates high marginal profits. Management projects an adjusted EBITDA compound annual growth rate in the high 30s to 40% range between 2024 and 2027, a forecast Pershing Square deems realistic.

Despite a 57% stock rally in 2025, Uber shares are considered reasonably priced by Pershing Square, trading at a forward price-to-earnings ratio of 23.2, comparable to the S&P 500. While revenue growth has moderated from 2021-2022 levels, the company achieved a 16% revenue increase in H1 2025 and is expected to sustain double-digit annual gains. This continued growth is supported by its expanding base of 180 million monthly active users.

Key Decisions for Investors

• Investors should evaluate Uber's sustained profitability and strong adjusted EBITDA growth guidance as primary indicators of its evolving fundamental strength and potential for long-term value creation.
• Consider the current valuation, with a forward P/E of 23.2, as potentially attractive given its growth trajectory and comparison to the broader market, despite recent stock appreciation.
• Monitor Uber's ability to maintain double-digit revenue growth and expand its monthly active user base, as these factors are critical for achieving projected EBITDA targets and reinforcing its competitive moat.