Overview
- Shares plunged more than 10% on Thursday after StubHub reported second-quarter revenue of $573.1 million but posted essentially zero net income because expenses rose about 37 percent.
- The company says transfer failures tied to FIFA's bespoke mobile ticketing app left some paying customers unable to receive tickets and stranded outside stadiums during the World Cup.
- Refund payouts, big customer-service scaling costs and early legal defense fees drove the expense surge that wiped out the quarter's profit.
- Multiple lawsuits, including a proposed federal class action seeking millions, have been filed and the Texas Attorney General has opened an investigation into the ticketing problems.
- The episode highlights resale platforms' reliance on primary-ticket systems, raises questions about pre-listing practices, and could force higher compliance and operational costs for future large events.