Pershing Square adds Uber to portfolio, citing valuation disconnect
The alternative asset manager disclosed a new stake in the ridesharing giant, arguing that concerns over autonomous vehicles have pushed the stock to near its lowest ever valuation despite strong earnings growth.
Pershing Square Holdings has added a new position in Uber Technologies, according to its second quarter 2026 investor letter. The alternative asset manager, which dedicates 98% of its capital structure to publicly traded investment vehicles including Howard Hughes Holdings, identified the multinational technology company as a key addition to its portfolio. Pershing Square’s strategy focuses on acquiring high-quality companies at safe price points, with the expectation of significant annual earnings per share growth of 15% or more.
The firm noted that Uber’s share price remained relatively unchanged during the second quarter and is down 12% year-to-date. As of 17 August 2026, Uber closed at $74.99 per share, reflecting a market capitalisation of $153.17 billion. Despite a one-month return of 4.81%, the stock has lost 21.33% over the past 52 weeks. Pershing Square attributed this depreciation to broad investor concern regarding the potential long-term impact of autonomous vehicles on the company’s business model.
In the investor letter, Pershing Square highlighted an "increasingly fraught relationship" between Uber and its partner, Waymo, as a specific factor weighing on the stock this quarter. However, the firm pointed to Uber’s progress with other strategic partners, noting that autonomous vehicle launches are planned in multiple new cities later this year. These developments are seen as offsetting the concerns surrounding the Waymo partnership.
Pershing Square argued that Uber’s valuation is increasingly disconnected from its fundamentals, with the company trading at 19 times earnings. The firm described this multiple as being near Uber’s lowest ever valuation, despite the company demonstrating very strong operating and financial performance. According to the letter, Uber’s earnings are on pace to grow approximately 35% this year, a trajectory that Pershing Square believes is not fully reflected in the current share price.
The addition of Uber to the Pershing Square portfolio comes as hedge fund interest in the stock has grown. Data indicates that 153 hedge fund portfolios held Uber at the end of the first quarter of 2026, up from 147 in the previous quarter. Uber currently ranks 12th on a list of the 40 most popular stocks among hedge funds heading into 2026.
Pershing Square’s capital permanency allows for long-term investments, a strategy that has yielded substantial market returns since 2018. The firm’s decision to add Uber underscores its view that the market is overreacting to autonomous vehicle risks, creating an opportunity for investors to buy into a company with robust earnings growth at a depressed valuation.
