Uber stock popped nearly 10% on Wednesday: what happened?

Uber Technologies Inc (NYSE: UBER) is up close to 10% at writing after announcing ambitious target for the next three years.

Details of Uber’s three-year targets

The ride-hailing giant told investors in a presentation today that its gross bookings will grow at a compound annualised rate of about 15% to 18% over the next three years.

$UBER also confirmed plans of opportunistically reinvesting in pursuit of longer-term growth and said free cash flow (FCF) as a percentage of EBITDA (adjusted) will climb over 90% in the coming years.

Note that the New York listed firm now expects its adjusted EBITDA to deliver high 30% to 40% CAGR over the same three-year period.

Uber stock is now up more than 30% versus its year-to-date low in the first week of January.

Uber stock up on buyback announcement

On Wednesday, Uber Technologies Inc also announced its first-ever stock repurchase programme. Prashanth Mahendra-Rajah – its chief of finance said told investors today:

Fleet partnerships, he added, will help improve high-quality supply as well.

The news arrives only days after $UBER reported its financial results for the fourth quarter that handily topped Street estimates (find out more). Wall Street currently has a consensus “buy” rating on the $142 billion behemoth based out of San Francisco, California.