Uber on Wednesday announced its first-ever stock buyback plan. Uber stock jumped in early trading on the news.
The ride-hailing company said its board has approved the repurchase of up to $7 billion in stock. The announcement comes less than a week after Uber reported its fourth-quarter results, showing the San Francisco company's first annual profit.
The buyback plan is "a vote of confidence in the company's strong financial momentum," Uber Chief Financial Officer Prashanth Mahendra-Rajah said in a news release.
Uber Chief Executive Dara Khosrowshahi said late last year that a buyback was in the works for the company. The firm announced the plan Wednesday ahead of a meeting with Uber stock analysts.
On the stock market today, Uber stock rallied more than 8% to 74.72 in early trades.
Shares of Uber more than doubled in value last year. That helped land Uber in the S&P 500. Meanwhile, Uber stock is up about 17% this year, not counting Wednesday's premarket action.
