Bill Ackman Sells Alphabet Stake, Buys Uber: Bets Big on Robotaxi Future, Not Tesla

Pershing Square’s portfolio reshuffle reflects strategic conviction in ride-hailing giant Uber over tech behemoth Alphabet amid intensifying AI, cloud, and robotaxi competition.

Billionaire hedge fund manager Bill Ackman cut his stake in Alphabet by 7%, offloading 772,000 shares in Q1, even as Google gained cloud market share and reinforced AI leadership. The move surprised many investors, especially as Alphabet stock remained widely viewed as undervalued, with analysts projecting a median price target of $200—9% upside from its current $183 level. Alphabet’s digital ad dominance, YouTube ecosystem, and its rising presence in generative AI and data science had positioned it for long-term double-digit growth. However, antitrust headwinds have emerged as a significant overhang, with two major court rulings concluding Alphabet operates illegal monopolies in internet search and adtech. Remedies—including potential divestitures—are expected to be decided in August and September 2025, increasing uncertainty.

• Ackman sold 7% of Alphabet holding despite strong cloud growth and AI leadership

• Alphabet under legal pressure: U.S. courts deemed it a monopoly in two major verticals

• Digital ad and cloud markets still offer 10–20% CAGR through 2030

• Alphabet’s autonomous arm Waymo expanding in 5 cities with over 250,000 weekly paid rides

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Uber Now Ackman’s Top Pick with 19% Portfolio Weight After 266% Rally

Ackman bought 30.3 million shares of Uber, making it Pershing Square’s largest position at 19%, betting heavily on the ride-hailing leader’s dominance in mobility, food delivery, and autonomous vehicle (AV) partnerships. Uber has returned 266% since January 2023, driven by improving profitability and growing institutional conviction in its robotaxi roadmap. Ackman praised Uber as “one of the best-managed and highest-quality businesses in the world,” highlighting CEO Dara Khosrowshahi’s strategic execution. The company now partners with Waymo, Pony AI, Volkswagen, May Mobility, and WeRide, cementing its role as the key go-to-market channel for global AV players. Khosrowshahi estimates the U.S. robotaxi TAM at $1 trillion, with Uber aiming to offer the lowest operational cost platform for AV rollouts.

• Ackman now holds 30.3M shares in Uber—his largest position

• Uber partners with AV leaders across U.S., Middle East, and Europe

• Expected to launch robotaxis commercially in LA, Dubai, Arlington and expand to 15 new cities

• Wall Street sees 25% earnings CAGR for Uber over next 3–5 years

Robotaxi Ecosystem Takes Center Stage: Why Uber, Not Tesla, May Lead

Unlike Tesla, which has yet to launch a live commercial robotaxi network, Uber is already enabling AV rides via third-party robotaxi operators across Phoenix, Austin, Atlanta, and Abu Dhabi. Tesla’s own robotaxi plan, while ambitious, remains speculative with no confirmed rollout dates. In contrast, Uber is building a multi-partner, multi-region AV network, ensuring scalability regardless of which AV tech wins. Ackman’s pivot reflects a broader market thesis shift from self-contained tech firms to platforms that can scale others’ innovation, with Uber positioned as the operating layer for AV commerce.

• Uber is live with robotaxi rides via Waymo, WeRide, and others

• Tesla lacks commercial robotaxi presence; Uber acts as neutral AV integrator

• Uber forecast to generate significant AV revenue with minimal R&D burden

• Institutional confidence in Uber’s AV strategy is accelerating

Valuation Edge: Uber Looks Cheaper with Stronger Growth

Uber trades at 15.9x forward earnings, compared to Alphabet’s 20.5x, even though Uber is projected to grow EPS at 25% CAGR over the next three to five years, well above Alphabet’s 14% CAGR forecast. That makes Uber a more attractive GARP (growth at reasonable price) play in Ackman’s eyes, particularly as the robotaxi catalyst strengthens. Uber’s leadership across mobility and food delivery, plus its growing integration with AI-driven logistics and AV, provides a diversified pathway to long-term growth.

• Uber’s 15.9x PE appears cheap relative to 25% EPS growth projections

• Alphabet’s 20.5x PE supported by 14% CAGR, but legal clouds remain

• Uber favored for upside from autonomous deployment and AV logistics moat

• AV ecosystem could deliver exponential value via Uber’s existing infrastructure

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