Workflow
Uber Stock Rises on Accelerated $1.5 Billion Buyback Plan
UBERUber(UBER) Investopedia·2025-01-06 15:31

Stock Buyback Program - Uber announced an accelerated stock buyback program, agreeing to buy back 1.5billioninsharesfromBankofAmerica,representingabout801.5 billion in shares from Bank of America, representing about 80% of the shares under the accelerated plan [1] - The 1.5 billion buyback is expected to deliver more than 18.5 million shares, with the remaining purchases to be completed in Q1 2025 [1] - This accelerated plan is part of the 7billionstockbuybackprogramannouncedinFebruary2024,markingthecompany′sfirst−everbuybackprogram[2]FinancialPerformanceandStrategy−UberCFOPrashanthMahendra−Rajahstatedthatthecompanyisentering2025with"considerablemomentum"andplanstosignificantlyscalefreecashflows[3]−TheCFOemphasizedthatUber′sstockisundervaluedrelativetothestrengthofitsbusiness,justifyingtheacceleratedbuybacksasavalue−enhancingdeploymentofcapital[4]−Inthefirstthreequartersoffiscal2024,Uberspent7 billion stock buyback program announced in February 2024, marking the company's first-ever buyback program [2] Financial Performance and Strategy - Uber CFO Prashanth Mahendra-Rajah stated that the company is entering 2025 with "considerable momentum" and plans to significantly scale free cash flows [3] - The CFO emphasized that Uber's stock is undervalued relative to the strength of its business, justifying the accelerated buybacks as a value-enhancing deployment of capital [4] - In the first three quarters of fiscal 2024, Uber spent 697 million on stock buybacks [4] Market Reaction - Uber shares rose more than 2.75% on Monday morning following the announcement of the accelerated buyback program [5]