By Sabela Ojea

Bill Ackman has amassed a roughly $2.3 billion stake in Uber, saying in a post on X that the ride-hailing company's stock is undervalued.

Ackman said on Friday in the post that his Pershing Square investment fund began acquiring a position in Uber in early January and now owns 30.3 million shares. That would give him a 1.4% ownership stake in Uber, becoming the 12th-largest shareholder in the San Francisco-based company, according to FactSet.

"We believe that Uber is one of the best managed and highest quality businesses in the world," Ackman said. "Remarkably, it can still be purchased at a massive discount to its intrinsic value," he added.

The billionaire investor praised the management of Uber Chief Executive Dara Khosrowshahi, noting that under his tenure the company has become highly profitable and is generating a ton of cash.

Uber shares were recently trading at 8.4% at $75.75. The stock was trading at $75.08 before Ackman made the announcement. Shares of competitor Lyft are up about 4.1% at $14.65.

In his post, Ackman said that he has been a long-term user and admirer of Uber since actor Edward Norton, one of the early investors in Uber, showed him the app early on. Ackman said he was also an early investor in Uber through a small investment in a venture fund.

"We will have more to share about our thinking on the company shortly," he said.

Uber on Wednesday reported lower-than-expected operating income, sending the stock lower as the market questioned the company's plans to compete in the robotaxi race.

Uber and Pershing Square weren't immediately available for comment.

Write to Sabela Ojea at sabela.ojea@wsj.com

(END) Dow Jones Newswires

February 07, 2025 12:28 ET (17:28 GMT)

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