Uber Technologies (NYSE: UBER) stock surged to a record high on Wednesday after the company revealed plans for its first-ever buyback program, aiming to repurchase shares worth up to $7 billion.
Prashanth Mahendra-Rajah, the CFO of Uber, announced the first-ever share repurchase program of the company, calling it a testament to the robust financial growth of Uber.
This groundbreaking move comes on the heels of Uber’s recent milestone, reporting its inaugural annual net profit since its public debut in 2019. Uber disclosed a substantial surge in free cash flow, reaching $3.4 billion in 2023, compared to a mere $390 million the previous year.
Simultaneously, alongside its earnings report, the company revealed plans to initiate a shareholder capital return program, paving the way for its latest buyback announcement.
Investors prefer share buybacks due to their tax efficiency, but the resulting boost in a company’s stock is typically short-lived.
In a separate development, thousands of drivers from Uber, Lyft, and other delivery services have geared up for a Valentine’s Day strike at major U.S. airports, demanding improved working conditions.
Uber (NYSE: UBER) Stock Performance
UBER stock surged 14.73% to close at $79.15 on Wednesday. The traders had exchanged hands with 69,693,764 (69.69 million) shares compared to the average daily trading volume of 30.75 million.
