Uber Technologies Inc. has reached the black ink.
Uber announced it will buy back as much as $7 billion in shares, its first plan to return capital to shareholders after achieving operating profit and consistent positive free cash flow in 2023, Bloomberg reported earlier this week.
In a statement, Chief Financial Officer Prashanth Mahendra-Rajah called the repurchase plan a “vote of confidence in the company’s strong financial momentum.” said in a statement.
“We will be thoughtful as it relates to the pace of our buyback, beginning with actions that partially offset stock-based compensation, and working toward a consistent reduction in share count,” the statement read.
The stock jumped about 4.6% in premarket trading in New York. It has more than doubled over the past 12 months, Bloomberg reported.
Last week, according to Bloomberg, Uber said it achieved its first full year of profitability since it was established 14 years ago.its founding more than 14 years ago. And in December, the network reported, it was added into the benchmark S&P 500 Index. The stock more than doubled in 2023 and has gained 12% this year, closing at $68.99 Tuesday in New York.
