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Highlights
- The stock value of Wynn Resorts, Limited (NASDAQ:WYNN) fell 13.7% YTD.
- The stock of Las Vegas Sands Corp (NYSE:LVS) plunged 33.2% YTD.
- DraftKings Inc. (NASDAQ:DKNG) expects its full-year revenue to be between US$1.21 bn and US$1.29 bn in FY21.
The casino and betting stocks will be among investor's prime focuses in the coming weeks as the NFL season jumpstarts in the backdrop of the Macau government's crackdown on casinos.
Macau is the world's largest betting hub, with a multitude of casinos dotting the coastal territory. The government plans to introduce strict rules for the gambling industry, its main revenue generator.
Meanwhile, according to the cybersecurity company GeoComply, around 58.2 million sports betting transactions were made between last Thursday and Sunday as the NFL season kickstarted. It was a sharp increase from the same period a year ago. The bets were made from some 18 US states,
Here we look at the performance of some of the top casino and betting stocks drawing massive investor attention over the past few days.
Wynn Resorts, Limited (NASDAQ:WYNN)
Wynn is a Las Vegas, Nevada-based casino operator with an interest in luxury hotels.
The shares of the company traded at US$85.05 at 11:54 am ET on September 15, down 7.80 percent from its previous closing price. The stock slipped 13.7 percent YTD. The firm has a market cap of US$9.83 billion, and a forward P/E one year of -16.59. Its EPS is US$-13.31.
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The highest and lowest stock prices for the last 52 weeks were US$143.88 and US$67.70, respectively. The trading volume was 25,730,110 on September 14.
The company's total operating revenue was US$990.11 million in Q2, FY21, compared to US$85.69 million in the year-ago quarter. Its operating loss came in at US$29.52 million, compared to US$523.01 million in the same quarter of the previous year.
The company reported a net loss of US$173.39 million, compared to US$734.86 million in Q2, FY20.
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Las Vegas Sands Corp (NYSE:LVS)
LVS is also based in Las Vegas, Nevada. It is a casino and resort company and offers accommodation as well as facilities like gambling, restaurants, etc., to customers.
The stock was priced at US$37.11 at 12:05 pm ET on September 15, down 4.13 percent from its previous closing price. The LVS stock tumbled 33.2 percent YTD. The market cap of the company is US$28.51 billion, and the forward P/E one year is -51.61. Its EPS is US$-1.74.
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The highest and lowest stock prices in the last 52 weeks were US$66.77 and US$36.42, respectively. The trading volume on September 14 was 51,816,140.
The net revenue was US$1.17 billion in Q2, FY21, compared to US$62 million in the same quarter of the previous year. Its operating loss was US$139 million compared to US$757 million in Q2, FY20.
The company reported a net loss of US$242 million, or a loss of US$0.25 per common share, against a loss of US$985 million, or a loss of US$1.07 per common share, in the year-ago quarter.
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MGM Resorts International (NYSE:MGM)
MGM is a hospitality and entertainment company and runs resorts in various locations. The company is based in Las Vegas, Nevada.
The stock traded at US$39.76 at 12:13 pm ET on September 15, down 3.98 percent from its closing price of September 14. The stock soared 39.43 percent YTD. It has a market cap of US$19.15 billion, and a forward P/E one year of -39.44. Its EPS is US$-2.55.
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The 52-week highest and lowest stock prices were US$45.34 and US$19.55, respectively. Its trading volume was 8,339,647 on September 14.
Its consolidated net revenue surged 683 percent YoY to US$2.3 billion in Q2, FY21. Its operating income was US$263.76 million, against a loss of US$1.03 billion in the year-ago quarter.
The company's net income was US$90.30 million, or US$0.14 per diluted share, compared to a loss of US$936.48 million, or a loss of US$1.67 per diluted share in Q2, FY21.
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DraftKings Inc. (NASDAQ:DKNG)
It is a sports betting company based in Boston, Massachusetts. The company organizes various sports contests, where users can bet by using its platform.
The stock was priced at US$59.88 at 12:21 pm ET on September 15, up 1.41 percent from its previous closing price. The DKNG stock grew 31.63 percent YTD. The market cap of the company is US$24.12 billion, and the forward P/E one year is -18.45. Its EPS is US$-3.30.
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The 52-week highest and lowest stock prices were US$74.38 and US$34.90, respectively. Its share volume on September 14 was 8,923,647.
The company's revenue increased by 297 percent YoY to US$298 million in Q2, FY21. Its net loss attributable to common shareholders was US$305.52 million, or a loss of US$0.76 per share, compared to a loss of US$524.79 million, or a loss of US$1.80 per share in Q2, FY20. The company now expects its full-year revenue for FY21 to be between US$1.21 billion and US$1.29 billion.
Source: pixabay
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Penn National Gaming, Inc. (NASDAQ:PENN)
Penn National Gaming is a casino operator that also has interests in racetracks. It is headquartered in Wyomissing, Pennsylvania.
The stock traded at US$75.53 at 12:33 pm ET on September 15, up 0.61 percent from its closing price of September 14. Its stock value decreased by 7.19 percent YTD. The firm has a market cap of US$11.74 billion, a P/E Ratio of 27.55, and a forward P/E one year of 23.39. Its EPS is US$2.72.
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The 52-week highest and lowest stock prices were US$142.00 and US$52.09, respectively. Its trading volume was 5,637,717 on September 14.
The revenue was US$1.54 billion in Q2, FY21, compared to US$305.5 million in the year-ago quarter. Its net income was US$198.7 million compared to a loss of US$214.4 million in Q2, FY20.
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Bottomline
The gambling operators lost more than US$18 billion after the Macau government’s crackdown on casinos. These developments seem gloomy now, but they may change if betting operators can resolve the issues. Investors will eagerly wait to see how these developments pan out. Meanwhile, they must carefully evaluate the companies before investing.
