Billionaire Bill Ackman Has 13% of His Hedge Fund in Uber. 1 Reason Why the Famed Investor Believes the Stock Will Skyrocket Over the Next 5 Years.
2026-09-28 16:30
•Neil Patel •The Motley Fool
•• • Axe Cap view
Why Ackman’s Big Bet on Uber Matters for SA Investors
Bill Ackman’s large Uber stake shows confidence in rapid earnings growth, but South African investors should tread carefully.
Bill Ackman putting 13% of his portfolio into Uber signals strong conviction in the ride-hailing giant’s ability to deliver 25% annual earnings growth over the next few years. At a forward P/E of about 16, Uber looks cheap relative to its potential, especially if it can leverage autonomous driving and expand globally. But here’s the local twist: South African investors won't find a neat local proxy. The USD/ZAR exchange rate will influence any underlying gains once you convert. A weaker rand could erode gains, even if Uber’s dollar returns soar. Plus, emerging market volatility or regulatory shocks—like transport sector disruptions in South Africa—could limit enthusiasm for tech and service plays broadly. So Uber is attractive on paper; just remember your gains might feel different once the rand’s involved. this is just our opinion and not financial advice
Hold off on directly chasing Uber via offshore investments unless comfortable with currency risk; better to watch USD/ZAR trends and consider selective exposure in local tech or consumer counters that benefit from digital adoption instead.
- UBER
- USD/ZAR
- Rand depreciation reducing returns
- Regulatory shocks impacting ride-hailing globally and locally
5/10
Billionaire investor Bill Ackman's Pershing Square Capital Management has allocated nearly 13% of its portfolio to Uber Technologies. Ackman is bullish on Uber based on projections that the company's earnings per share will grow at a compound annual rate of 25% over the next three to five years. Combined with potential valuation multiple expansion and Uber's current discounted forward P/E ratio of 15.9, analysts believe the stock could more than triple in five years.
Our take is based on reporting first published by The Motley Fool.