Uber‘s stock spiked more than 10% Wednesday morning after the ride-sharing company announced it will buy back up to $7 billion worth of company 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 said in a press release 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 news comes a week after Uber reported fourth-quarter results that beat Wall Street’s earnings and revenue estimates.
CEO Dara Khosrowshahi called 2023 a year of “sustainable, profitable growth for Uber,” and told CNBC in an interview on Feb. 7 that a shift in consumer spending from retail to services has bolstered the company’s performance.
Uber’s mobility segment revenue was up 34% from the year prior, and its delivery segment’s revenue was up 6% from the year before.