Uber Begins $1.5B Accelerated Buyback Under $7B Plan; Shares Rise 5.5%

Jan 6, 2025, 12:48 PM

Uber Technologies Inc. announced a $1.5 billion accelerated share repurchase program, part of its previously authorized $7 billion share buyback plan. The company has entered into an agreement with Bank of America to repurchase $1.5 billion of its common stock, with an initial delivery of approximately 18.6 million shares on January 6, 2025. The accelerated share repurchase (ASR) is expected to be completed during the first quarter of 2025 and will reduce Uber's market capitalization by over 1%. Uber's Chief Financial Officer stated, "Our stock is undervalued relative to the strength of our business, and we plan to accelerate our buybacks under the existing authorization as a result." Following the announcement, Uber shares rose as much as 5.5% in pre-market trading. Investment firm Wedbush also added Uber to its 'Best Ideas' list.