This tech stock looks cheap, and billionaire Bill Ackman has doubled down on it, accumulating over 30 million shares; here's why he is gung-ho about it
Pershing Square Capital Management Bill Ackman has recently disclosed that his hedge fund had been buying Uber Technologies stocks since early January this year, as per reports. As of date, Pershing Square holds over 30 million shares, meaning its stake is currently worth more than $2 billion, reported The Motley Fool. Here's what is inspiring all this excitement about Uber.
Piper Sandler analyst Thomas Champion declared Uber as a «sleeping giant» because the strength of its core businesses creates adjacent opportunities in autonomous driving and advertising, reported The Motley Fool.
According to experts, despite making a blistering 115% return in the last two years, Uber still has lots of room to grow and this is the reason why Ackman is so confident in Uber.
Dominant ride-sharing and food delivery markets
Uber has emerged as the dominant player in a takeaway pool of two industries: ride-sharing and food delivery, with the largest ride-sharing platform in 10 countries and the second-largest food delivery service in the US, as per the report.
Uber's hook is in the network effect- the more users, the more essentially valuable it is for them driving a spike in growth, according to The Motley Fool. In the recent quarter, monthly active platform consumers increased 14% to 171 million, and trip counts increased 18% to 3 billion.
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