By Mackenzie Tatananni

Shares of Uber Technologies gained on Friday after Pershing Square Capital Management revealed it had opened a new $2.2 billion position in the ride-hailing app.

A filing with the Securities and Exchange Commission showed the firm had taken a stake of 30.3 million shares in Uber during the first quarter of 2025.

Uber stock rose 1% to $91.10 in premarket trading. Futures tracking the benchmark S&P 500 were up 0.3%.

Also on Thursday, Citi Research analysts led by Ronald Josey reiterated a Buy rating and $102 price target on the shares, citing a string of announcements from Uber's annual product showcase earlier this week.

New offerings in the Mobility category should make commuter trips "more affordable and convenient," the analysts said. These include Ride Passes, which offer discounts for bundled trips, and Price Lock, which allows users to secure a specific price for up to 10 routes a month.

In their view, one of the most meaningful additions was a tool called the Savings Slider, which they said "could be the most impactful to improving frequency, affordability, and convenience" as Uber builds out its grocery business.

The Savings Slider allows users to compare the price of goods on their grocery list with cheaper alternatives. It will be available on the Uber Eats app later this year, beginning in the U.S. and Canada.

It's worth noting Pershing Square took a stake in Uber months before the product showcase. Founder and CEO Bill Ackman has long been a fan of the company, with ties that stretch back to the time of Uber's founding.

The billionaire investor noted in a social media post in February that he had been "fortunate" to be a day-one investor through a small investment in a venture fund.

"While a great business, Uber suffered from erratic management," Ackman wrote. He lauded Dara Khosrowshahi's leadership since he took helm as CEO in 2017.

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

Pershing exited its position in Nike during the March quarter, selling its entire stake of nearly 18.8 million shares. However, Ackman said the filing showing the sale didn't reflect Pershing Square's purchase of over-the-counter call options "in a similar notional amount."

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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May 16, 2025 08:31 ET (12:31 GMT)

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