Wynn Resorts Smashes It - Up 33% in a Month on Recovery Hopes
The smart money has stayed away from Bitcoin and the Bitcoin related darling stocks such as Tesla and MicroStrategy. And instead, it has found a home in the pure play
consumer recovery stocks that make up the US Casino industry. Many of these companies have also benefitted from gaining exposure to the online betting space. The darling in the sector
this month has been Wynn Resorts - up an astonishing 33% to date - and with some analysts attaching a $200 price tag to the stock.
As things currently stand a very supportive macro backdrop pertains; further US stimulus on the cards; improving corporate earnings; increased vaccine production leading to better vaccination rates ultimately leading to a less restrictive lockdown, an increase in household savings, significant pent up demand, a likely acceleration in PMIs from Q2 and the potential for an upward surprise growth spurt. The best long-term scenario centres around the notion that eventually online betting will be available in 50 states in the US. In a recent report JP Morgan forecast that the US sports betting market could be worth $9.2bn by 2025 - highlighting the potential linkage between betting and media companies and sports bodies (in relation to data). And then there is Macau, which has gradually being easing quarantine restrictions on visitors from China, with a final lifting of restrictions on February 21 fuelling optimism on the bacl of recent data that showed casino revenue had surged last week during the Lunar New Year holidays
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