Why StubHub Stock Plummeted by 13% This Week
StubHub Holdings (NYSE: STUB) took a drubbing over the past few days, due to a new law in a major metropolitan market that could ding the ticket company's business. Investors didn't like the sound of that, and many reacted by selling their shares. This resulted in a 13% dive over the week for StubHub's stock, according to data compiled by S&P Global Market Intelligence.
On Tuesday, the Washington, D.C. City Council passed the RESALE Act into law. The measure, whose name stands for "restricting egregious scalping against live entertainment," imposes a 10% cap on secondary-ticket sale markups. That's quite the curb on StubHub's local business, as it relies on hefty markups for profitability.
The law takes effect on Jan. 1, 2027.
Source Fool.com
