We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
UBER Stock Skyrockets on Inaugural Buyback Announcement
Read MoreHide Full Article
Shares of Uber Technologies (UBER - Free Report) performed exceedingly well on Feb 14, ending the trading session at $79.15 per share, up 14.73% from Feb 13’s closing price. The uptick followed management’s announcement that it would be buying back stock for the first time in its history, thereby rewarding its shareholders.
The board of directors of the ride hailing company authorized up to $7 billion in share repurchases. The decision to buyback its own stock suggests that the board believes shares are currently undervalued. Per chief financial officer, Prashanth Mahendra-Rajah, UBER will first use the buyback plan to offset its stock-based compensation.
When a company buys back its own stock, it retires those shares, thereby causing a reduction in total number of shares outstanding. This implies that the denominator of earnings per share is decreased, thereby boosting the bottom line.
Price Performance
Shares of UBER, which was recently added to the S&P500 index, have risen 47.2% in the past three months, outperforming S&P 500’s 10.6% growth.
Image Source: Zacks Investment Research
The company recently reported strong fourth-quarter 2023 results as the ride share market improves from pandemic lows.
Investors interested in the same industry may also consider some other top-ranked stocks like Shopify (SHOP - Free Report) and Zscaler (ZS - Free Report) .
Shopify has outshined the Zacks Consensus Estimate in each of the past four quarters, the average beat being 82%. Shopify’s focus on developing merchant base, international expansion, addition of fulfillment network functionalities, rich partner ecosystem and mobile focus are key growth drivers. The growth in e-commerce spending bodes well for Shopify.
Zscaler has also outpaced the Zacks Consensus Estimate in each of the past four quarters, the average beat being 27.3%. Zscaler is benefiting from the rising demand for cyber-security solutions due to the slew of data breaches. The increasing demand for privileged access security on digital transformation and cloud-migration strategies is a key growth driver.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
UBER Stock Skyrockets on Inaugural Buyback Announcement
Shares of Uber Technologies (UBER - Free Report) performed exceedingly well on Feb 14, ending the trading session at $79.15 per share, up 14.73% from Feb 13’s closing price. The uptick followed management’s announcement that it would be buying back stock for the first time in its history, thereby rewarding its shareholders.
The board of directors of the ride hailing company authorized up to $7 billion in share repurchases. The decision to buyback its own stock suggests that the board believes shares are currently undervalued. Per chief financial officer, Prashanth Mahendra-Rajah, UBER will first use the buyback plan to offset its stock-based compensation.
When a company buys back its own stock, it retires those shares, thereby causing a reduction in total number of shares outstanding. This implies that the denominator of earnings per share is decreased, thereby boosting the bottom line.
Price Performance
Shares of UBER, which was recently added to the S&P500 index, have risen 47.2% in the past three months, outperforming S&P 500’s 10.6% growth.
Image Source: Zacks Investment Research
The company recently reported strong fourth-quarter 2023 results as the ride share market improves from pandemic lows.
Zacks Rank & Other Key Picks
UBER currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the same industry may also consider some other top-ranked stocks like Shopify (SHOP - Free Report) and Zscaler (ZS - Free Report) .
Shopify has outshined the Zacks Consensus Estimate in each of the past four quarters, the average beat being 82%. Shopify’s focus on developing merchant base, international expansion, addition of fulfillment network functionalities, rich partner ecosystem and mobile focus are key growth drivers. The growth in e-commerce spending bodes well for Shopify.
Zscaler has also outpaced the Zacks Consensus Estimate in each of the past four quarters, the average beat being 27.3%. Zscaler is benefiting from the rising demand for cyber-security solutions due to the slew of data breaches. The increasing demand for privileged access security on digital transformation and cloud-migration strategies is a key growth driver.