Uber shares rally after announcing inaugural $7bn share repurchase program

Uber (NYSE: UBER) shares are up more than 5% premarket Wednesday after it announced its inaugural share repurchase program.

The company has authorized the repurchase of up to $7 billion of the company's common stock. The repurchase program is Uber's first-ever.

CFO Prashanth Mahendra-Rajah said the move is a "vote of confidence in the company's strong 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," commented Mahendra-Rajah.

Uber's share price premarket is trading at $72.87, close to its February 7 intraday high of $73.05. The company is set to host a virtual investor update today at 8 am ET.

By Sam Boughedda

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