Uber’s stock surges by over 10% following a $7 billion share buyback

Uber’s value increased by over 10%. Following its announcement on Wednesday morning, the ride-sharing company said it will repurchase up to $7 billion worth of stock.

“Today’s authorization of our first-ever share repurchase program is a vote of confidence in the company’s strong financial momentum,” Prashanth Mahendra-Rajah, the CFO of Uber, stated in a press release on Wednesday morning.

A week ago, Uber released fourth-quarter statistics that exceeded Wall Street’s projected sales and earnings. This week, the repurchase news was revealed.

In an interview with CNBC on February 7, CEO Dara Khosrowshahi referred to 2023 as a year of «sustainable, profitable growth for Uber» and mentioned that the company’s success has been enhanced by consumers’ shifting spending from retail to services.

Uber saw a 34% increase in revenue from its mobility segment and a 6% increase from its delivery segment in the previous year.