Uber announces its first share buyback program with an authorization for up to $7 billion worth

Uber Technologies Inc.
UBER,
-0.19%
announced its first-ever share buyback program on Wednesday saying its board has authorized the repurchase of up to $7 billion worth of stock. Chief Financial Officer Prashanth Mahendra-Rajah said the move was a vote of confidence in the company’s financial momentum. “We 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,” he said in a statement. The ride-sharing company also announced a virtual investor day that will start later Wednesday at 8:00 a.m. Eastern time. Uber reported fourth-quarter earnings last week showing net income of $1.4 billion, but $1.0 billion of that came from unrealized gains related to its equity investments. The stock jumped 4% premarket and has gained 96% in the last 12 months, while the S&P 500
SPX,
-1.37%
has gained 19.6%.