US Markets
Wednesday, February 14th, 2024 3:58 pm EDT
Key Points
- Uber’s stock surged by over 10% following the announcement of a share buyback program worth up to $7 billion.
- Uber CFO Prashanth Mahendra-Rajah emphasized the buyback as a vote of confidence in the company’s strong financial momentum and outlined a cautious approach to its implementation, starting with offsetting stock-based compensation.
- The buyback news coincided with Uber’s fourth-quarter results, which exceeded Wall Street’s earnings and revenue estimates.
Uber’s stock experienced a surge of over 10% on Wednesday morning following the announcement of its plans to initiate a share buyback program worth up to $7 billion. Prashanth Mahendra-Rajah, Uber’s CFO, expressed confidence in the company’s financial trajectory, labeling the share repurchase authorization as a testament to Uber’s robust financial momentum. Mahendra-Rajah emphasized a cautious approach to the buyback, intending to initially utilize it to partially offset stock-based compensation and gradually reduce the company’s share count. This move comes shortly after Uber exceeded Wall Street’s expectations with its fourth-quarter results, which CEO Dara Khosrowshahi hailed as a year of sustainable and profitable growth for the company. Khosrowshahi attributed Uber’s success in 2023 to a shift in consumer spending patterns favoring services over retail, a trend that has bolstered Uber’s performance. Notably, Uber’s mobility segment revenue witnessed a substantial increase of 34% compared to the previous year, while its delivery segment revenue also experienced a notable uptick of 6% from the preceding year.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/14/uber-stock-pops-more-than-10percent-on-7-billion-share-buyback.html
