Tuesday was hard day for stock investors, with most market indexes falling to earth. There was no shortage of shares that ended up trading lower on the day.
Some, however, took a greater hit than others. There are three that got hit the worst.
The market tapped the brakes today on Lyft (NASDAQ:LYFT) and Uber Technologies (NYSE:UBER), the two rideshare giants frequently mentioned in the same breath. The former decelerated by almost 8% on the day, while the latter slipped 5%.
Lyft was the more significant decliner likely because of announced changes in its all-important app. The company said an update to the software will include other transportation options. The move comes in the wake of mounting criticism that the Lyfts and Ubers of this world increase vehicle congestion and slow traffic in urban areas. But, of course, investors are, reasonably, concerned that this will pull business away from Lyft.
Both loss-making companies are under operational and financial pressure. A bill recently passed in California, which seems directly aimed at how the pair conduct their businesses, tightens the rules for which kind of worker is considered an employee and which a contractor. It’s more involved and expensive to carry an employee on a company’s books.
Additionally, investors digested news today that the transportation authority in London has extended the company’s operating license in the sprawling European city by only two months, well short of the full five-year term Uber was seeking.
BlackBerry (NYSE:BB), a roller-coaster tech stock if there ever was one, seems like it’s starting a slip down another slope. The stock topped the list of prominent decliners, shedding almost 23% of its value at market close.
The catalyst behind this is the company’s release of its Q2 2020 results. BlackBerry again defaulted to non-GAAP revenue when updating its guidance for the entirety of fiscal 2020.