kkjili free 58.Https www kkjili8 com m home,Kkjili casino login register

Global economy faces warning following decline of gambling stocks

Lea Hogg August 8, 2024

Share it :

Global economy faces warning following decline of gambling stocks

Forbes has cast a spotlight on the gambling industry, specifically in a report focusing on four major gambling stocks that have hit new lows. This development is more than just a fluctuation in the market; but it is a clear negative indicator for the economy as a whole. The rationale behind this assertion lies in the nature of the gambling industry itself. The report explains that because the gambling industry is so heavily dependent on discretionary spending, it raises red flags about the overall health of the economy when it faces challenges.

Gambling, by its very nature, is the epitome of consumer discretionary spending. A thriving casino and resort industry is often a barometer of a robust economy. It signifies that consumers have the financial flexibility to engage in activities that are not essential but enhance their lifestyle. Casinos and gambling indicate that consumers have disposable income.

Therefore, the current state of these four gambling stocks should not be viewed in isolation. Instead, it is more of a warning sign, a prompt to pay closer attention to the global economy’s trajectory. The health of the gambling industry and these stocks, in particular, could provide valuable insights into future economic trends, according to Forbes.

Gambling stocks hitting new lows

The report takes a closer look at these four gambling stocks that have hit new lows.

Las Vegas Sands (NYSE: LVS)

Las Vegas Sands, a company where more than half of the ownership lies with Miriam Adelson and her family, has seen its stock price fall from $55 in February to $37 in August. Although the stock is currently rebounding from its lows, the fact that the 50-day moving average crossed below the 200-day moving average in early May is not a positive sign. The company’s market capitalization stands at $28.35 billion.

Melco Resorts and Entertainment (NASDAQ: MLCO)

Melco, a Hong Kong-based company, is one of the smaller publicly traded gambling companies with a market cap of $2.63 billion. The stock, which traded as high as $9.50 at the beginning of the year, is now valued at $5.51, representing a 42 percent decline. It’s worth noting that the stock has only briefly traded above a steadily declining 200-day moving average, and the 50-day moving average is also trending downward.

MGM Resorts International (NYSE: MGM)

MGM Resorts International’s stock had been trading along the path of the 200-day moving average for several months. However, it lost this support over the last five sessions, hitting a new low of just under $34 before bouncing back. The company, which has a market capitalization of $11.29 billion, reported second-quarter earnings in late July that exceeded analysts’ expectations.

WYNN Resorts (NYSE: WYNN)

WYNN Resorts, with a market cap of $8.55 billion, saw its stock price drop from $110 in early April to as low as $73 this week, a 33 percent decline. The 50-day moving average crossed below the 200-day moving average in late June, signalling potential selling pressure. The stock is currently emerging from the relative strength indicator’s “oversold” zone.

It is not all doom and gloom however, as a number of casino and resort stocks are currently rebounding from new lows. For instance, Bally’s (NYSE: BALY) traded as low as $10 in March and is now priced at $16.97. Similarly, Caesars Entertainment (NYSE: CZR) hit a new low of just below $32 in late May but has managed to stay above that level during this week’s sell-off.

The developments in the gambling industry warrant further analysis and commentary, particularly given their potential implications for the broader economy.

SiGMA East Europe Summit powered by Soft2Bet, will take place in Budapest from 2-4 September 2024

Recommended for you