Benzinga - by Zaheer Anwari, Benzinga Contributor.
Uber Technologies Inc's (NYSE: UBER) stock hit an all-time high of $79 as it unveiled an ambitious $7 billion share buyback program. The buyback holds significance, marking a turning point for Uber. Since its public debut in 2019, the company has experienced both successes and setbacks. Interestingly, the timing of this buyback aligns with Uber's recent announcement of its first annual net profit.
The market wasted no time responding to the announcement, and the market reaction was positive. Uber's shares saw an 8% jump at the opening and closed the day with an impressive 14% increase.
This surge in stock value is worth noting, especially considering it took place amidst a strike by drivers from Uber and other companies, highlighting the resolute investor confidence in Uber's business model and future prospects.
The ride-share market, which encountered unprecedented challenges during the pandemic, has not only bounced back but has also grown significantly. Uber's ability to adapt and innovate during these trying times has yielded impressive results, with the company's market value doubling last year.
In 2023 alone, Uber's stock experienced a staggering growth of 145%, and the positive trend has continued into 2024, with a year-to-date growth already reaching 28%.
With the recent news causing the stock to gap higher, there's a possibility that some investors could decide to cash in on their profits. This could result in a temporary dip in the stock price, which is a common occurrence in the stock market, particularly after significant news and rapid stock appreciation.
Despite this, the overall bullish momentum surrounding Uber suggests a positive long-term outlook for the company.
After the closing bell on Wednesday, February 14, the stock closed at $79.15, trading up by 14.73%.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.
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