Core Viewpoint - StubHub Holdings, Inc. faces potential regulatory challenges in the U.K. ticket resale market, which may impact its growth outlook for 2026, leading to a decline in share prices [1][7]. Group 1: Regulatory Environment - The U.K. is expected to introduce legislation that would prohibit the resale of live event tickets above their face value, targeting the use of bots in ticket sales [2][5]. - The proposed U.K. rules could reduce StubHub's 2026 gross merchandise sales (GMS) growth by approximately two percentage points, with a potential $100 million to $130 million headwind if a typical 33% markup is eliminated [3][5]. Group 2: Market Impact - International GMS is estimated to account for about 13% of StubHub's total GMS forecast, with U.K. activity representing roughly 20% to 25% of that international mix [3]. - If more tickets are sold directly to consumers rather than through brokers, fewer tickets may be available in secondary markets, further impacting StubHub's sales [4]. Group 3: Future Outlook - The Federal Trade Commission (FTC) is considering consumer protections for live entertainment, which poses a greater risk to StubHub than the U.K. regulations [5][6]. - The stock price reflects expectations of slower growth in 2026 and 2027, with ongoing regulatory uncertainties affecting the company's outlook [7].