StubHub stock fell 13% this week after Washington, D.C. passed the RESALE Act, capping secondary ticket resale markups at 10%. Analyst Jason Bazinet estimates that if similar caps averaging 15% are implemented across multiple jurisdictions currently considering such measures, StubHub's revenue could decline by 30% and EBITDA could drop by $95 million if 20% of sales are affected.
Axe note: Washington D.C.’s new law on ticket resale markups could cut StubHub’s revenue sharply, a warning for JSE stocks reliant on high-margin models.