Why Lyft Tanked 17% in October
Shares of Lyft (NASDAQ: LYFT) tanked 17.1% in October, according to data from S&P Global Market Intelligence. That move sent the ride-hailing stock from $28 per share to $23 during the month.
For context, Lyft shares are down 47% for the year through October, primarily due to the COVID-19 impact on its business.
While Lyft didn't report any news during October that would explain the stock's 17% sell-off, the market was heavily focused on the Proposition 22 ballot initiative in California. Last year, California passed a bill called AB-5, which required companies like Lyft and Uber to reclassify all its contractors -- better known as drivers -- as employees and provide them with expanded benefits.
Source Fool.com
