Why Wynn Resorts' Shares Jumped 11.5% Monday
Shares of casino giant Wynn Resorts, Limited (NASDAQ: WYNN) jumped as much as 11.5% in trading Monday on some rare good news coming out of Macau. Shares were still up 8.2% at 11:30 a.m. EST.
Macau's Gaming Inspection and Coordination Bureau released November's gaming numbers over the weekend, and they were a lot better than most investors expected. Gaming revenue was up 8.5% to $3.1 billion, recovering from a sharp dip in September that sent Wynn and other gaming stocks tumbling.
November was still the fourth-worst gaming revenue month of 2018, but it didn't continue a downward trend that investors had been worried about. Instead, it looks like Macau has stabilized at an average revenue of just over $3 billion per month.
Today's move is really a recovery from a long slide for Wynn Resorts' shares. The stock is down 29.6% in 2018, even after today's move, and has been on a downward trend since early summer. For the climb to continue, Macau needs to show stable or even growing gaming revenue that would manifest in growth at Wynn Macau and Wynn Palace casinos. One month doesn't guarantee the resorts will perform well over the next few quarters, but investors are hoping this is the end of negative gaming results in Macau.
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Travis Hoium owns shares of Wynn Resorts. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.