This Stock Is One of the Largest Holdings in Billionaire Bill Ackman's Portfolio, and It Could Be a Huge Winner

Bill Ackman, the founder of Pershing Square Capital Management, owns a significant stake in Uber Technologies, accounting for 14% of his portfolio. Although Uber's stock has decreased by 29% from its peak, Ackman holds a different perspective. He believes that Uber stock could be a significant long-term winner due to its position in the autonomous driving industry.

Uber already has a well-established infrastructure in place, providing a platform for ride-hailing services and managing a fleet to ensure appropriate deployment of vehicles in various cities. Additionally, several companies have chosen to deploy their autonomous vehicles through Uber's network, benefiting from access to Uber's 215 million monthly active customers.

This arrangement allows Uber to maintain its asset-light business model, taking a cut of every ride facilitated by its platform without investing billions in developing its own self-driving cars. As autonomous vehicles become more prevalent, Uber stands to gain substantial revenue and operating profit, even without acquiring new customers.

Currently, Uber trades at a price-to-sales (P/S) ratio of 2.6, which is significantly lower than its average of 4 since going public in 2019 and considerably cheaper than the Nasdaq-100 index's P/S ratio of 6.1. Furthermore, Uber's price-to-earnings (P/E) ratio of 42.2, compared to DoorDash's P/E ratio of 75.1, suggests that investors may be undervaluing Uber's ride-hailing business due to the potential disruption from autonomous vehicles.

Ackman's confidence in Uber's autonomous future makes it an attractive investment opportunity for those seeking significant returns in the coming years.