Why LYFT and Uber Are Exploding Higher Today

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FILE - In this Feb. 5, 2020, file photo trader Ashley Lara works on the floor of the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EST on Wednesday, Feb. 19. (AP Photo/Richard Drew, File)

Gig economy stocks, like LYFT Inc. (LYFT) and Uber (UBER) got a boost earlier this week on the passage of California Prop 22 won.

As noted by The Guardian, LYFT and Uber won a major victory to classify drivers as contractors, not employees following the passage of the measure. “The passage of proposition 22 in the home state of many of the gig economy companies is likely to be seen as an example for tech legislation around the US.”

Wedbush analyst Dan Ives, as quoted by MarketWatch said. “Taking a step back, this removes a significant overhang and dark cloud for the likes of Uber and Lyft and ends this ‘head scratching’ AB5 legislation chapter that was a major threat to the future of the Gig Economy and thousands of drivers throughout California.”

At the moment, LYFT is up 13% to $29.67.  UBER is up 12.5% to $40.23.