Despite the allure of casinos and the profitability for their owners, the overall trend of casino and resort stocks is downward. The recent news of billionaire investor Carl Icahn taking a stake in Caesars Entertainment has caused some excitement, but the charts show a different story.
Boyd Gaming, started by Sam and Bill Boyd in 1975, has seen its stock value drop significantly in recent months, trading below both the 50-day and 200-day moving averages. Caesars Entertainment, on the other hand, experienced a brief increase in stock value after Icahn’s investment, but it remains below the 50-day moving average and is lower than the late 2023 low.
International Gaming Tech, a UK-based gaming device maker, is also struggling with its stock price direction, as the 50-day moving average crossed below the 200-day moving average in late 2023. Las Vegas Sands, owned primarily by Miriam Adelson, is testing the October 2023 lows and facing downward trends in both the 50-day and 200-day moving averages.
MGM Resorts International is showing more promising signs compared to other major casino names, as it remains above the October and November 2023 lows. However, the stock is still below both the 50-day and 200-day moving averages, indicating potential challenges ahead.
Investors are waiting to see how Monday morning will unfold after digesting the news of Icahn’s investment in Caesars Entertainment over the weekend. Despite the occasional spikes in stock value, the overall trend for casino and resort stocks seems to be on a downward trajectory. For more analysis and commentary on price charts, visit johnnavin.substack.com.
In conclusion, while the casino industry continues to attract consumers, the stock market performance of major casino and resort companies is painting a different picture. With downward trends in stock values and moving averages, it remains to be seen how investors will react to news of new investments from prominent figures like Carl Icahn. The future of the industry may be uncertain, but for now, it seems that caution is warranted when considering investments in casino and resort stocks.
