
NYSE:LVS
This summary was created by AI, based on 2 opinions in the last 12 months.
Las Vegas Sands Corp. (LVS-N) is facing significant challenges, as indicated by its disappointing performance in January, where it experienced a notable decline of 19%. The recent quarterly report highlighted weaknesses in its operations in Macau and raised concerns regarding elevated spending. While the company has diversified by selling off its Vegas assets to focus on its casino operations in Asia, including five casinos in Macau and one in Singapore, the overall outlook appears bleak. Despite reporting a top and bottom line beat, the stock was adversely affected by disappointing margins, further leading to skepticism among experts, some of whom express a general aversion to gambling stocks altogether. This compound of disappointing earnings and cautious sentiment may pose a risk to investors considering Las Vegas Sands in the current market climate.
He prefers Wynn Resorts (very well-run), but both will benefit from a Biden presidency and warmer US relations with China.
Feels consumer traffic is lower than before and remains low for the time being. He is still a little bit cautious on owning this. He would like to own it at some point just because of the real estate they own and that they are in one of the highest growth areas in the world. Trading at about 18X forward earnings, with a growth rate that should pick up. We’ll have to see about the economy in China. This is a high beta stock if you are trying to buy volatility.
Like all casino stocks, this is pretty volatile, but they can be great trading vehicles. The trick is to watch for the bottom formations. Whenever you are looking at a stock like this, you wait for a pullback, and then a base, and a break out. This has not started to do that yet. He would not buy this until it starts to move up.