By Chibuike Oguh
NEW YORK (Reuters) -Shares of Uber Technologies (NYSE:UBER) jumped to a three-month high on Friday after billionaire hedge fund manager Bill Ackman announced that he had taken a stake worth about $2.3 billion in the ride-sharing platform.
In a post on social media platform X, Ackman said he began acquiring a stake in Uber in early January and now owns 30.3 million shares in the company.
"While a great business, Uber suffered from erratic management," said Ackman, who is the founder and chief executive of New York-based Pershing Square Capital Management.
"Since he joined the company in 2017, Dara Khosrowshahi (Uber) CEO has done a superb job in transforming the company into a highly profitable and cash-generative growth machine."
Uber shares jumped nearly 10% to as high as $76.76, the highest level since October 30, giving it a market capitalization of about $161 billion. The company's shares have gained nearly 26% so far this year. It lost 2% in 2024.
Earlier this week, Uber beat estimates with a 20% jump in fourth quarter revenue to $11.96 billion. Its adjusted net profit of 23 cents, however, missed analyst expectations of 50 cents, according to LSEG data.