# Billionaire investor Ackman is optimistic about this tech stock's long-term rise.

Hedge fund mogul Bill Ackman has made another move. His fund, Pershing Square, quietly began buying shares of ride-hailing giant Uber starting in January, and by Q3, he had invested nearly $3 billion, accounting for 20% of the fund's total investment portfolio—this guy usually holds only 10-12 stocks at a time, indicating that Uber carries significant weight in his eyes.

Why is there so much optimism? Ackman stated that Uber's CEO has turned the company into a "high-profit, high-cash-flow growth machine." In the first three quarters of this year, Uber burned through nearly $7 billion in free cash flow, a year-on-year rise of 34%. The ride-hailing business itself has already turned profitable, and the food delivery segment Uber Eats has also surged by 25%.

More importantly, there is a vast imagination space for AI and autonomous driving. Nvidia has recently partnered with Uber to scale its autonomous vehicle fleet to 100,000 units. Although Uber does not manufacture cars itself, it has integrated autonomous driving companies like Waymo and WeRide into its platform and operational system, essentially creating an autonomous driving transfer station. Ackman expects this business segment alone to be valued at over 1 trillion.

In terms of stock price, Uber has risen 32% this year, and currently, based on the expected EPS of $3.6 for 2026, the PE is only 23 times, which is about the historical average. However, if it can achieve an EPS growth rate of 30% or more, the valuation is expected to upgrade, which is the logic of long-term compound growth.