Billionaire Ackman invests 20% of his fortune in this stock, should retail investors follow suit?

Question

This week there is big news: hedge fund pro Bill Ackman made a large purchase of Uber stocks in Q1 2025, and now this stock has become the largest Heavy Position in his Pershing Square fund, accounting for as much as 19%. It’s worth noting that he only has Holdings in 10 companies in total, what does this mean?

Why does Ackman have his eye on Uber?

This guy has a strategy. Historically, he has liked to cut his hands when the stock prices of companies like Chipotle and Alphabet are beaten down, and then waits for the rebound to make a lot of money. This time is also the same strategy—Uber's valuation is incredibly cheap.

Let the data speak:

Revenue for the first three quarters: 38 billion USD, a year-on-year increase of 18%
Net Profit: $9.8 billion (compared to $3 billion in the same period last year, more than tripled)
P/E Valuation: Only 11 times, with an expected PE of only 20 times in the coming year.
Stock Price Performance: Increased by 40% over the past year, recently dragged down for a pullback.

Why is it worth paying attention to?

There are three main highlights:

1. Core Business is Stable — Ride-hailing + Food Delivery accounts for 90% of total revenue, both legs are running. Ride-hailing business increased by 18%, and food delivery surged by 24%.

2. Strong Cost Control — While revenue increased by 18%, the cost growth rate was only 13%, resulting in a significant profit leverage.

3. Autonomous driving is the future gold mine — Uber has launched autonomous driving services in some cities, and this business has enormous potential. Other companies' autonomous vehicles are likely to be dispatched using the Uber platform, which presents a new source of revenue.

Should retail investors follow?

To be honest, this is not the logic of “I buy it just because the pro bought it”. But from a fundamental perspective, Uber does seem a bit undervalued —

Advantages: Leading player in the global travel market, stable growth, cheap valuation, and autonomous driving is a long-term catalyst.

Risk Aspect: The concentration of a single stock is high, and sufficient funds and psychological resilience are needed.

Conclusion: If you have the patience for long-term Holdings and are not tight on funds, Uber can be considered. But don't follow the trend blindly — this investment is suitable for investors who can withstand volatility.

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