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

The fund manager's original thesis with Uber has been playing out, even if the stock hasn't yet responded.

The stock is now trading at a better valuation, and its place in the robotaxi ecosystem looks more certain.

Legendary hedge fund investor and billionaire Bill Ackman went all in on Uber Technologies (NYSE: UBER) at the start of 2025, but more than a year and a half later, his $2 billion investment in the rideshare operator hasn't gone very far. He's still probably up on his investment, having reportedly bought most of his shares in early January 2025, but after a surge to over $100 per share, the stock is off 25% from its highs and up only about 15% from early January 2025.

When Ackman revealed his stake in Uber in February 2025, he called it "one of the best-managed and highest quality businesses in the world." He said the long-term risk from autonomous driving looked limited, believing these companies are more likely to partner with Uber given its scaled network.

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He also noted that delivery, which makes up half its bookings, is unlikely to be affected given the need for a person to pick up and deliver the food. Ackman also believed the company was well positioned to see rapid earnings growth in the medium term coming from a combination of strong revenue growth and expense control.

Ackman's thesis that Uber would see strong operating leverage and brisk earnings growth has largely been playing out, even if the stock hasn't always followed suit. The stock immediately fell in the aftermath of its Q2 results, reported before the bell on Aug. 5, although it has since rebounded.

For the quarter, Uber's revenue climbed 12% year over year, or 11% on a constant currency basis, to $14.19 billion. However, it saw an 8-percentage-point headwind because of a business model change in some international markets that affected its accounting.