It’s always hard to know what drives the movement in a company’s stock price but Sotheby’s released an 8-K tot he SEC to help address some concerns that a Republican proposal to change the current rules around 1031 Exchanges that allow dealers (and others) to avoid paying capital gains until a final sale and the anti-corruption turmoil in Saudi Arabia. [Our emphasis added]:

• Based on a sample of 2017 sale transactions, the Company estimates that consignors who are believed to have taken advantage of Section 1031 treatment for capital gains generated by the sale of their property have only accounted for approximately 2% of auction commission revenue and less than 6% of private sale commission revenue in the trailing twelve month period.
• In response to questions regarding the impact on our business of recent anti-corruption measures being undertaken by the government of Saudi Arabia, the Company estimates that sales of property to national citizens from the Kingdom of Saudi Arabia have accounted for less than 0.25% of net auction sales in 2016 and the first nine months of 2017.