Uber Technologies CEO Dara Khosrowshahi speaks via webcast during Uber Technologies’ initial public offering on the floor of the New York Stock Exchange on May 10, 2019.
Michael Nagle | Bloomberg | Getty Images
UberThe company’s stock soared more than 10% Wednesday morning after the ride-hailing company announced it would buy back up to $7 billion worth of its own stock.
“Today’s approval of our first-ever stock repurchase program is a vote of confidence in our company’s strong financial momentum,” said Uber Chief Financial Officer Prashanth Mahendra Raja. press release Wednesday morning.
Mahendra-Raja added that Uber will be “prudent about the pace of share buybacks, starting with steps to offset some stock-based compensation and working toward consistent share reductions.”
The stock buyback news comes a week after Uber reported fourth-quarter results that beat Wall Street’s profit and revenue expectations.
CEO Dara Khosrowshahi called 2023 a year of “sustained, profitable growth for Uber,” and said in a Feb. 7 interview with CNBC that consumer spending will shift from retail to He said the shift to services has boosted the company’s performance.
Uber’s mobility division’s revenue was up 34% year over year, and its delivery division’s revenue was up 6% year over year.
