Smith Collection / Gado / Getty Images
What you need to know
- Uber stock rose after the announcement that it will begin an aggressive stock purchase program.
- Uber’s $7 billion program of buybacks, announced in February 2020, includes the $1.5 billion Uber plan.
- Uber's CFO said the company is buying back its own stock because it is "undervalued relative to the strength of our business."
Uber’s (UBER), shares soared Monday, after the company announced it was launching an accelerated buyback program. The agreement is to purchase $1.5 billion worth of shares from Bank of America.
The company said the $1.5 billion purchase—expected to deliver more than 18.5 million shares—represents about 80% of the shares Uber plans to buy back under the accelerated plan, with the rest of the purchases expected to be completed in the first quarter of this year.
Uber’s $7 billion buyback plan, announced by the company in February 2024 as the first in its history, includes the accelerated program.
CFO Says Uber Stock is 'Undervalued'
Uber’s CFO Prashanth Mahaendra-Rajah stated that Uber will begin 2025. “considerable momentum” Plan your future “continue scaling our free cash flows significantly,” This allows it to grow the business while returning capital to its shareholders.
“Our stock is undervalued relative to the strength of our business, and we plan to accelerate our buybacks under the existing authorization as a result," Mahendra-Rajah said. "This [accelerated share repurchase] represents a value-enhancing deployment of capital, retiring over one percent of our market cap.”
Uber’s latest quarterly earnings report, released at the end October, revealed that it spent $697,000,000 on buying its own shares in the first quarter of fiscal 2024.
Uber stocks were up by over 2.75% on Monday.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
