Amid financial market fervor for artificial intelligence (AI), sleepier cyclical stocks — including select shares of casino operators — are languishing.
Casino stocks have been punished in recent weeks, and the damage is widespread. Over the past month, the average loss incurred by MGM Resorts International (NYSE: MGM) and Caesars Entertainment (NASDAQ: CZR), the two largest operators on the Las Vegas Strip, is nearly 10.5%.
Macau-centric names haven’t fared any better over that span, as shares of Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) are lower by 13.81% and 12.92%, respectively. Performances such as those imply that investors treat gaming equities like a recession is afoot. But activity on the Strip and the Macau rebound suggest otherwise. Some analysts believe there’s a silver lining to the recent lethargy in gaming equities.
Casino stocks have been punished in recent weeks, and the damage is widespread. Over the past month, the average loss incurred by MGM Resorts International (NYSE: MGM) and Caesars Entertainment (NASDAQ: CZR), the two largest operators on the Las Vegas Strip, is nearly 10.5%.
Macau-centric names haven’t fared any better over that span, as shares of Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) are lower by 13.81% and 12.92%, respectively. Performances such as those imply that investors treat gaming equities like a recession is afoot. But activity on the Strip and the Macau rebound suggest otherwise. Some analysts believe there’s a silver lining to the recent lethargy in gaming equities.