Major casino stocks drop after investment reports downplay Macau growth
Two separate investment reports downgrading prospects from the Macau gaming market sent stock prices reeling Monday for Nevada-based casino operators that have large holdings in Macau.
Wynn Resorts Ltd., experienced the largest drop, $5.93 or 2.89 percent, to close at $199.05 on the Nasdaq after both Well Fargo Securities and Union Gaming Group downgraded the potential growth in Macau’s high-end gambling business.
Shares of MGM Resorts International fell 61 cents or 2.43 percent to close at $24.53, while Las Vegas Sands Corp. fell $1.61 or 2.16 percent to close at $72.84. Both companies are traded on the New York Stock Exchange.
Wells Fargo gaming analyst Cameron McKnight said he expects Macau’s market to grow revenues in June, but not at previously expected rates. He said soccer’s World Cup could draw the attention of gamblers away from the casino tables.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.
