StubHub Stock Drops 13% Amid New D.C. Law on Ticket Resale
StubHub Holdings (NYSE: STUB) saw a significant decline in stock price this week due to the passage of Washington, D.C.'s RESALE Act, which limits secondary ticket markups to 10%. The law could negatively impact StubHub's profitability by reducing its ability to charge high resales. Citigroup analyst Jason Bazinet estimates that if similar laws are adopted more broadly, StubHub’s revenue may fall by around 30%.
Topics: Citigroup analysis resale laws StubHub ticket scalping