Casino Stocks Gain on Expected Asia Rebound
Among the casino operators that saw gains today were LVS, Wynn, and MGM
Casino stocks saw some nice gains on Thursday after industry executives at Las Vegas Sands Corp. (NYSE: LVS) said they expect Asia revenues to rebound quickly.
The executives from the Nevada-based company, which operates the world's most expensive casino in Singapore valued at $5.88 billion, said in a conference call after the markets closed that its business in Asia will rebound more quickly than in the U.S.
Robert Goldstein, the chief operating officer of LVS, attributed the quick recovery to the public's readiness to wearing face masks, having their temperature taken, and using other precautionary measures, as they've experienced epidemics in the past.
He added, "In fact, I think they're going to welcome it and be anxious to get back to having fun. I believe that from the bottom of my heart, the recovery in Asia is going to happen rather quickly. I'm not as comfortable [about] Vegas."
The news sent LVS stock soaring 11% to $45.56 per share by midday Thursday. That was despite the company's reports that its revenue in the first quarter declined 51% to $1.78 billion on a net loss of $51 million.
Other casino operators that enjoyed gains in trading today were Wynn Resorts Ltd. (Nasdaq: WYNN), which surged 8% to $75.90 per share, and MGM Resorts International, (NYSE: MGM) rising 4% to $13.85 per share intraday. In Asia, the two companies operate casinos including MGM China and Wynn Macau.
In February, Bloomberg reported that Wynn was losing around $2.5 million a day in Macau.
In the U.S., Las Vegas Mayor Carolyn Goodman has urged casinos to reopen based on the number of Covid-19 infections.
"Assume everybody's a carrier," Goodman told MSNBC's Katy Tur in a phone interview on Tuesday.
She continued, "And then you start from an even slate, right there, and tell the people what to do. And let the businesses open, and competition will destroy that business if, in fact, they become evident that they have disease. They're closed down. It's that simple."
Goodman does not have the authority to allow casinos to reopen. Instead, that'll be up to Nevada's governor Steve Sisolak, who said today that the state and its casinos are "clearly not ready to reopen."
Currently, all U.S. casinos are still waiting to reopen.