Uber Technologies’ (Uber) Operating Strength Outpaces Market Valuation

Pershing Square Holdings, a prominent investment firm, disclosed its Q2 2026 investment letter, revealing that Uber Technologies, Inc. (NYSE:UBER) is among their newly acquired positions. UBER operates in the ridesharing, food delivery, freight, and other service sectors. As of August 17, 2026, UBER's share price closed at $74.99, with a market capitalization of $153.17 billion.

Despite a one-month return of 4.81%, UBER's shares declined by 21.33% over the past 52 weeks. Pershing Square Holdings noted that UBER's stock price has remained relatively unchanged during the second quarter, while its year-to-date performance has dropped by 12%. The primary concern surrounding UBER is the potential long-term impact of autonomous vehicles (AVs), exacerbated by tensions with its partner, Waymo.

However, UBER is actively making strides with other strategic partners, with AV launches planned in various cities later this year. Despite these developments, UBER's valuation appears disconnected from its fundamentals, as it currently trades at 19 times earnings, near its lowest point. UBER ranks 12th on Pershing Square Holdings' list of the 40 most popular stocks among hedge funds for 2026, with 153 hedge funds holding UBER at the end of Q1, up from 147 in the previous quarter.

While Pershing Square Holdings acknowledges UBER's investment potential, they believe other AI stocks present greater upside potential and lower downside risk.