Uber (NYSE:UBER) stock and Lyft (NASDAQ:LYFT) stock are on the rise Tuesday after a court ruled that the companies’ drivers are contractors.
A California court ruled that gig workers at ridesharing companies, such as Uber and Lyft, are contractors and not employees. That’s a major win for these companies as it means they can avoid offering them the full benefits required of employees.
However, this ruling doesn’t mean that Uber and Lyft are out of the woods just yet. It’s likely that the California Supreme Court will also look over the case. That means it could be another year or two before that court rules on the matter.
Analysts have weighed in on this news, with Jefferies’ John Colantuoni saying it could save the companies between 20 million and $170 million in 2024 earnings. Other analysts also believe the ruling could result in similar court cases in other states, reports Reuters.
What This Means for UBER Stock and LYFT Stock
If today’s ruling doesn’t get overturned, it could mean ridesharing stocks will continue to see growth. These companies have a large reach right now that could expand further without the concern of gig workers being treated the same as employees. That would benefit earnings and likely boost the price of the stocks as well.
UBER stock is up 8.4%, and LYFT stock is up 8.9% as of Tuesday morning.
Investors looking for all of the latest stock market news will want to stick around!
InvestorPlace is home to all of the most recent stock market coverage traders need to know about on Tuesday! Among that is what has shares of bank stocks, OKYO Pharma (NASDAQ:OKYO), and GitLab (NASDAQ:GTLB) stock moving today. Investors can find more on these matters at the links below!
More Tuesday Stock Market News
- Why Are Bank Stocks KEY, WAL, SCHW, FITB, HBAN, TFC Up Today?
- Why Is OKYO Pharma (OKYO) Stock Down 10% Today?
- Why Is GitLab (GTLB) Stock Down 32% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.