UBER Stock Rises; LYFT Stock Lays as Gigs Win Case in Calif Court

• Uber stock rises as the California court ruling favors ride-sharing apps.
• Lyft stock continues to fall and loses 2.87% intraday.
• The California court overturned a previous ruling, allowing Prop.22 to stand.

Uber stock (UBER) gained after winning the lawsuit filed by a group of drivers, whereas Lyft stock (LYFT) lost post-win. The case moved around the November 2020 ruling that approved Proposition 22. In November 2022, California voters approved Proposition 22, which permitted the ride-sharing companies along with delivery apps architects to segmentize their drivers as independent contractors.

Uber stock and Lyft Stock suffered back in 2021 as, in a ruling, a California judge ruled the proposition to be unconstitutional. The judge also argued that it infringed the legislature’s power to establish standards at the workplace. Prop.22 created a framework which determined whether the aforementioned category of drivers were independent contractors or employees. 

The proposition exempted Uber, Lyft and similar companies from adhering minimum wage, overtime, or workers compensation laws. The counter provision required companies to provide compensation and healthcare “subsidies” and other benefits, including safety and sexual harassment training.

Prop.22 challenged in 2021

A group of ride-share drivers countered Proposition 22, and won a lower court ruling. The ruling given by the California judge titled Prop.22 as unconstitutional. In an opinion issued on Monday, California justice disagreed and upheld the proposition. The labor group and workers opposed the proposition saying it denied rights like sick leaves, to which the firm said it protects benefits like flexibility.

Millions of people work in the global gig economy services across the globe that operate in segments like food delivery and transport. These gig workers are paid for individual tasks in place of getting a regular wage, and most US federal and state labor laws do not apply to gig workers. Companies like Uber and Lyft are among the leads in Gig economy.

UBER Stock Price Action

Uber stock has broken out of the falling regression channel. The Uber stock price shed for two trading sessions, while the case was dealt in the court of California. The fall in price was followed by a minute rise, upon winning the case. The falling price is taking support near $30.00 and can retrace from here. 

The Fib retracement levels show a Uber stock price to possibly rise till $34.50, after which it may consolidate temporarily. If Uber stock price can break out of the resistance, it may aim to reach $37.60. The volume shows volatility and can continue to remain the same, if Uber stock begins to rally. 

The Uber stock price has escaped the declining streak and reached the support level, signaling a price reversal. The RSI begins to move sideways, after falling under selling pressure and losing for two trading sessions. The MACD formed a negative cross and recorded seller bars to show sellers’ dominance in the market. 

LYFT Stock Price Action

Lyft stock price has fallen by 2.87% in a single trading session, and for continuous four sessions, while the proposition awaited ruling. The falling Lyft stock price has escaped the declining trend and found support near $8.20. The price action hints at a delayed price reversal. The anticipated price reversal can face resistance near $12.10, after breaching initial levels of retracement.

If the Lyft stock price can successfully break out of the resistance, it can surge to 18.40. The diverged Bollinger Bands show Lyst stock price to be highly volatile in the marked duration. The RSI falls to the oversold zone to reflect the sellers’ dominance in the price action. The MACD records descending seller bars and nears a convergence, forming a possibility of a positive cross.

Conclusion

In the falling economy where the major source of revenue generation is by gig companies, federal and legislature support plays a crucial support in smooth functioning. Uber shares has begun to retrace and Lyft stock shows a possibility of a rally in the near future. The holders of both stocks can watch at the levels of retracement to trace the high run.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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