Bill Ackman Just Bought Uber Stock. 3 Reasons I'm Staying Away.
Last week, the stock of Uber Technologies went on a wild ride, falling hard after Uber reported earnings on Feb. 5, only to rocket higher toward the end of the week.On earnings, while revenue and earnings per share actually beat expectations, a somewhat muted growth outlook relative to expectations and overarching long-term concerns over autonomy caused investors to sell shares.However, the stock climbed the next day and then again on Friday, after hedge fund manager Bill Ackman announced on X his fund Pershing Square Holdings (OTC: PSHZ.F) had accumulated a 30.3 million-share stake in the company, worth $2.26 billion. In his post, he called Uber, "one of the best managed and highest quality businesses in the world," which can "still be purchased at a massive discount to its intrinsic value."Continue reading
Last week, the stock of Uber Technologies went on a wild ride, falling hard after Uber reported earnings on Feb. 5, only to rocket higher toward the end of the week.
On earnings, while revenue and earnings per share actually beat expectations, a somewhat muted growth outlook relative to expectations and overarching long-term concerns over autonomy caused investors to sell shares.
However, the stock climbed the next day and then again on Friday, after hedge fund manager Bill Ackman announced on X his fund Pershing Square Holdings (OTC: PSHZ.F) had accumulated a 30.3 million-share stake in the company, worth $2.26 billion. In his post, he called Uber, "one of the best managed and highest quality businesses in the world," which can "still be purchased at a massive discount to its intrinsic value."
