Macau casino stocks sank the most since March 2022, led by slump in Wynn Macau Ltd., as disappointing earnings cast doubts over the pace of recovery in the world’s largest gambling hub.
Wynn Macau tumbled 14% on Friday, after third quarter earnings missed estimates, dragged by higher-than-expected operating expenses. The drop weighed on a Bloomberg gauge of gaming operators in the city, which plunged as much as 7.4%.
“The stock is now in a ‘show-me’ bucket for many, making it volatile near-term until it can prove itself again, such as through its fourth quarter print,” wrote JPMorgan Chase & Co analyst DS Kim in a note.
