Due to their long -term results, the retail investors closely follow Bill Akman’s moves. The billionaire Hedge Fund manager runs Persight Square Capital Management, which manages assets of $ 12.6 billion as of December 31, 2024.
Akman is known for managing a concentrated portfolio full of what he believes are high quality businesses. Therefore, it is worth noting that so far this year the investment company has purchased more than 30 million shares from one growth of growthwhich is a new position for the Hedge Fund.
Let’s look at this fascinating company and whether it makes sense or not for your individual portfolio.
To this scripture on February 21, 30.3 million shares of Perushing Square give a share of $ 2.4 billion in Uber(Nyse: uber)S Akman is a longtime customer of the ride and delivery service and is pleased with the Executive Director of Dari Honuchahi, turned Uber into a winning growth enterprise. Akman came to the point that he was publishing to X that he and his team believe that it was one of the “highest quality businesses in the world”.
These are some positive comments from a powerful hedge fund manager that definitely put Uber in a very favorable light. Investors need to focus on the key financial engines of Akman’s thesis.
Perhaps the most important factor is the belief that Uber rally (EPS) will pop up in the coming years. The view is that the revenue will grow in the middle of the high T-shirts, thanks to the simple formula of more customers and more use and spending a customer.
Current operating efficiency should increase the bottom row. Uber’s operating margin was 6.4% in 2024, more than twice earlier. Expenditure control supports ACKMan’s estimate for more than 30% annual EPS growth in the coming years. This will lead to a huge generation of free cash flows.
Akman also highlighted Uber’s network effectwhich helps support the leading position in the company industry. This is exactly what Uber’s economic moat, which provides a lasting competitive advantage that allows business to maintain rivals.
As of December 31, 2024, Uber has 170 million active users on the platform, with 8 million drivers in 70 countries. The ability to match the rider’s demand with the driver’s capacity is enhanced by a growing network of more users. If more drivers are available, waiting time and prices are reduced for riders. And with more riders in the app, drivers spend less idle time and take the opportunity to make more money.
In addition to the quality of the business that attracted Akman’s attention, his company began to acquire shares because of an overwhelming grade. In the last 12 months, Uber shares are only 3% (February 21). However, the evaluations of consensus analysts for 2025 EPS have jumped by 21% during this time.
The elephant in the room when viewing stocks from Uber is the potential impact progress in Autonomous vehicle technology (AV) There may be. This is where Akman and his team give a direct answer to this threat. According to PersHing Square, AVS is still far from commercialization. Safety is a great concern, but there are also technical, infrastructure and regulatory obstacles for cleansing.
Moreover, as it was so far, Uber looks like an optional partner for AV companies. He already has many partners in space that everyone is probably aware of the powerful position that Uber has because of his direct connection with the users who have built habits using the platform. It’s hard to win.
If Tesla or AlphabetWaymo wants their AV technology to quickly acquire wide acceptance, working with Uber may be the best ticket, unlike the creation of a new ride from scratch. The latter will undoubtedly take time to scaling.
It’s easy to be Uber’s boss after learning Akman’s thinking. Investors who agree should consider buying shares.
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*Stock Advisor since February 24, 2025
Susan Frey, CEO of Alphabet, is a member of the Board of Directors of Motley Fool. Neil Patel and his customers have no position in any of the mentioned shares. Motley Fool has positions and recommends Alphabet, Tesla and Uber Technologies. Motley Fool has a policy of disclosure.
The billionaire Bill Akman has just bought 30.3 million shares from this rising growth action, originally published by Motley Fool
