StubHub Stock Plummets 13% After Washington D.C. Passes Ticket Resale Cap Law
StubHub Holdings (NYSE: STUB) saw its stock drop 13% this week after the Washington, D.C. City Council passed the RESALE Act, which caps secondary-ticket sale markups at 10%. The law, effective January 1, 2027, directly threatens StubHub's profitability model that relies on high markups. Citigroup analyst Jason Bazinet estimated that if similar caps averaging 15% are applied across jurisdictions, StubHub's revenue could fall by 30%, and EBITDA could decline by $95 million if 20% of sales are affected. D.C. joins Maine, Vermont, and Ontario in imposing such caps, with similar legislation introduced in New York, Massachusetts, California, and North Carolina. The article suggests more regulatory actions are likely, posing ongoing risks to StubHub's business model.
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