4 Reasons Macau Casino Stocks Are Tanking
Macau casino stocks have taken a beating in 2022. Bank of America analyst Shaun Kelley highlights at least four reasons why investors are dumping Macau stocks.
There are four main reasons why Macau casino stocks are selling off. There are new restrictions on Macao casinos, a new lockdown in Shenzhen and a large outbreak of COVID-19 in Hong Kong. U.S. regulators recently named five Chinese ADRs at risk of being delisted. There is renewed concern about the potential delistings of U.,S.-listed Chinese Chinese shares.
There is a new lockdown in Shenzhen following a surge of COVID-19 cases in the Chinese mainland. There has been a large outbreak in Hong Kong that includes 30,000 cases and 300,00 people quarantined. Investors are concerned about the economic fallout from Russia's invasion of Ukraine.
Wynn Resorts Limited (NASDAQ:WYNN) is down 22.7%, Las Vegas Sands Corp. (NYSE:LVS) down 25.1%, Melco Resort & Entertainment Ltd (Nasdaq:MLCO) - down 39.2%.
Wynn Resorts Limited (NASDAQ:WYNN) is down 22.7%, Las Vegas Sands Corp. (NYSE:LVS) down 25.1%, Melco Resort & Entertainment Ltd ( NASDAQ) - down 39.2%.
Macau and Macau casino operators have tremendous long-term upside potential. U.S. and Chinese regulators continue to crack down on Chinese companies.