Bill Ackman's $2 Billion Uber Stake Has Gone Nowhere Fast. Time to Buy?

Legendary hedge money capitalist and billionaire Bill Ackman went each successful connected Uber Technologies (NYSE: UBER) astatine the commencement of 2025, but much than a twelvemonth and a fractional later, his $2 cardinal concern successful the rideshare relation hasn't gone precise far. He's inactive astir apt up connected his investment, having reportedly bought astir of his shares successful aboriginal January 2025, but aft a surge to implicit $100 per share, the banal is disconnected 25% from its highs and up lone astir 15% from aboriginal January 2025.

When Ackman revealed his involvement successful Uber successful February 2025, helium called it "one of the best-managed and highest prime businesses successful the world." He said the semipermanent hazard from autonomous driving looked limited, believing these companies are much apt to spouse with Uber fixed its scaled network.

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He besides noted that delivery, which makes up fractional its bookings, is improbable to beryllium affected fixed the request for a idiosyncratic to prime up and present the food. Ackman besides believed the institution was good positioned to spot accelerated net maturation successful the mean word coming from a operation of beardown gross maturation and disbursal control.

Bullish thesis remains connected way

Ackman's thesis that Uber would spot beardown operating leverage and brisk net maturation has mostly been playing out, adjacent if the banal hasn't ever followed suit. The banal instantly fell successful the aftermath of its Q2 results, reported earlier the doorbell connected Aug. 5, though it has since rebounded.

For the quarter, Uber's gross climbed 12% twelvemonth implicit year, oregon 11% connected a changeless currency basis, to $14.19 billion. However, it saw an 8-percentage-point headwind due to the fact that of a concern exemplary alteration successful immoderate planetary markets that affected its accounting.

The alteration stems from laws successful the U.K. and immoderate different European countries that necessitate the institution to classify drivers arsenic workers alternatively than autarkic contractors, shifting however things specified arsenic fares and drivers' net impact gross successful these markets. However, the reclassification doesn't impact different metrics specified arsenic operating income, adjusted EBITDA, oregon escaped currency flow.

Nonetheless, the gross fig came up conscionable abbreviated of the expert statement for gross of $14.24 billion, arsenic compiled by LSEG, and its guidance was beneath expectations.

Both the company's main segments -- mobility (rideshare) and transportation (home to UberEats) -- saw beardown gross bookings (the full dollar magnitude billed to customers) successful Q2. Mobility gross bookings climbed 22% to $29 billion, though its gross roseate by conscionable 1% to $7.4 cardinal due to the fact that of the concern exemplary change. Segment adjusted EBITDA, however, climbed 28% to $2.2 billion. Its U.S. mobility operations benefited from the World Cup, arsenic good arsenic newer offerings similar U4B, oregon Uber for business.