Uber Stock Rises on Accelerated $1.5 Billion Buyback Plan | Global News Avenue

Uber (Uber) shares rose on Monday after the ride-sharing company said it was starting to accelerate stock buyback program Agree to repurchase $1.5 billion worth of stock from Bank of America (buck).

The $1.5 billion acquisition is expected to deliver more than 18.5 million shares, accounting for about 80% of the shares Uber plans to repurchase under the accelerated program, with the remaining acquisitions expected to be completed in the first quarter of this year, the company said. Year.

The acceleration program is part of Uber’s $7 billion stock buyback plan Announced February 2024the first buyback program in the company’s history.

CFO says Uber stock is ‘undervalued’

Uber CFO Prashanth Mahendra-Rajah said Uber will enter 2025 with “considerable momentum” and plans to “continue to significantly expand our free cash flow,” allowing it to invest in company growth while returning capital to shareholders.

“Our shares are undervalued relative to the strength of our business, so we plan to accelerate repurchases under our existing authorization,” Mahendra-Rajah said. “This (accelerated share repurchase) represents an accretive deployment of capital, recouping more than 100 million One-third of the market value.”

Uber stated in its latest financial report at the end of October that it had spent US$697 million to repurchase its own shares in the first three quarters of fiscal year 2024.

Uber shares were up more than 2.75% on Monday morning.