Uber inventory pops greater than 10% on $7 billion share buyback

Uber‘s inventory spiked greater than 10% Wednesday morning after the ride-sharing firm introduced it will buy back as much as $7 billion value of firm shares.

“Today’s authorization of our first-ever share repurchase program is a vote of confidence in the company’s strong financial momentum,” Uber CFO Prashanth Mahendra-Rajah mentioned in a press launch Wednesday morning.

Mahendra-Rajah added that Uber “will be thoughtful as it relates to the pace of our buyback, beginning with actions that partially offset stock-based compensation, and working towards a consistent reduction in share count.”

The buyback information comes every week after Uber reported fourth-quarter results that beat Wall Road’s earnings and income estimates.

CEO Dara Khosrowshahi known as 2023 a yr of “sustainable, profitable growth for Uber,” and instructed CNBC in an interview on Feb. 7 {that a} shift in shopper spending from retail to providers has bolstered the corporate’s efficiency.

Uber’s mobility section income was up 34% from the yr prior, and its supply section’s income was up 6% from the yr earlier than.

— CNBC’s Ashley Capoot contributed to this report.