The stock value of the international casino operator recently saw an increase in value. Las Vegas Sands, Wynn Resorts, Melco Resorts and Entertainment, and MGM all rose in terms of their trading price. The optimism was boosted when the US and China trade tensions eased recently and the revenue numbers out of Macau for November looked promising. Now, analysts are wagering that the same change is the start of a bigger move in value for at least two of the same casino operators who are currently transforming their businesses.
Boris Schlossberg, who is at BK Asset Management managing director of FX strategy, stated that Macao was a godsend for both Las Vegas Sands and Wynn. He also believes that the Chinese enclave will continue to boost the stocks of these operators as it transforms itself. The same process is expected to change the city from a gambling and casino destination to a global tourist hotspot.
This is mimicking the overall trend of successful casinos which are diversifying towards the hospitality industry, only on a much larger level. Currently, Macau cannot compete with the Las Vegas offer and the revenue of the entertainment and dining experience. All of its profits are generated by gaming, but the same concept will soon being to change.
Other analysts are less optimistic about the prospect of buying casino stocks. Oppenheimer’s head of technical analysis Ari Wald stated that these stocks have a bullish lean, but would not recommend getting any. He agrees that Las Vegas Sand could move upward in the near-term. However, the falling trend line for the company is still clear.
Recent geopolitical upheaval, especially that which reverberated in the financial domain, brought the stock price of most casino operators way down in 2018. Now, the two mentioned casino operators could be heading towards greener pastures, but the long-term prospect remains on shaky grounds. The US stance on the trade tariffs is one of the key problems and this factor and its volatility are not going anywhere as long as Donald Trump is the US president.
- Fresh Calls for the Sale of Caesars Entertainment - February 23, 2019
- Ocean Resort Casino Creates a New Sports Partnership - February 22, 2019
- Gulfside Operator urges Arkansas Commission to issue their Casino Approvals - February 21, 2019
- Shake Up in Ocean Resorts Casino Continues with New Departures - February 20, 2019
- President Duterte is not changing his Mind on the Casino Ban Issue - February 19, 2019