Uber and Lyft stock close at record lows as investor skepticism grows

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Uber and Lyft were trading on Tuesday more than 30% below their IPO prices of $45 and $72 a share, respectively.

Uber reported a net loss of $5.24 billion for its second quarter of 2019, blaming stock-based compensation costs. By comparison, Lyft lost $644.2 million in the second quarter, representing a significant jump from the $178.9 million it lost a year earlier.

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A proposed California law could also represent a major threat to Uber and Lyft's business models should it pass through the state Senate, as it would force the companies to reclassify their drivers as employees. The bill passed the California Assembly in May and California Gov. Gavin Newsom voiced his support for the bill on Tuesday. Meanwhile, Uber and Lyft have pledged $60 million to a ballot measure that would keep drivers' classification as contractors.