MGM - Why U.S. Casino Stocks Plunged by Double Digits on Wednesday
Shares of U.S. casino stocks took a nosedive on Wednesday as investors became more bearish on the gambling market's recovery. Shares of Eldorado Resorts (NASDAQ: ERI) dropped as much as 15.9%, Red Rock Resorts (NASDAQ: RRR) fell up to 15%, and Boyd Gaming (NYSE: BYD) fell as much as 10%. Shares of the three stocks were down 12.5%, 13.2%, and 7.8%, respectively, at the close.
The two other big casino operators, MGM Resorts International (NYSE: MGM) and Caesars Entertainment (NASDAQ: CZR), were being supported today for other reasons. MGM didn't fall as much as some of its rivals because it still has exposure to Macao, although shares closed down 8.4%. Caesars' shares were buoyed by the buyout agreement it has with Eldorado Resorts and the $8.40 per share in cash that shareholders are supposed to get as part of the deal.
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