The lockdowns in most parts of the world, owing to the coronavirus pandemic, have resulted in a massive loss of business in many industries, and one such industry is the casino industry. Some of the biggest casinos have been shut down temporarily, and that has resulted in a massive loss in revenues for some of the leading casino operators. However, things seemed to have taken a turn for the better.
t down temporarily, and that has resulted in a massive loss in revenues for some of the leading casino operators. However, things seemed to have taken a turn for the better.
On Thursday, casino stocks rebounded after executives at Las Vegas Sands Corp (NYSE:LVS) revealed that the company could be generating revenues from its casinos located in Asia.
The development resulted in an impressive rally in the Las Vegas Sands stock in the pre-market session as investors piled on to it, and the stock gained as much as 7.6%. However, that is not all. Other major casino stocks rallied as well on the back of the update from Las Vegas Sands. The MGM Resorts International stock soared by 2%, while the Wynn Resorts Ltd stock soared by as much as 5.3%. It goes without saying that the rally in these casino stocks will bring the sector into sharp focus during Friday’s session. Investors could do well to keep an eye on these stocks.
At the conference call for its quarterly earnings on Wednesday, the Las Vegas Sands executive stated that footfalls would rebound far quicker in Asia than in the United States. They said that since people in Asia are far more used to wearing face masks and taking other necessary precautions, the situation in the continent should rebound quickly.
Robert Goldstein, the Chief Operating Officer of Las Vegas Sands, stated that he believes that the recovery is going to be far quicker in Asia and went on to state that he is not as ‘comfortable’ with regards to the situation in Las Vegas. Another executive stated that businesses should improve in the summer and become stronger by the fall.