The city of Las Vegas is still in recovery mode. There are some signs that things will begin improving here in a big way soon. As a result, many LV casino companies are beginning to see an increase in their stock prices.
It’s great news for these companies. For almost a year, the casinos in Las Vegas have been struggling to bring in revenue. Now is a great time to talk about why exactly casino stock prices have been increasing lately.
Let’s get into it!
Gaming Revenue in Las Vegas Finally Increases in January
The gambling industry in Las Vegas is the biggest in the world. Unfortunately, it has been under extreme stress since the mass casino shutdowns in March of 2020. There are some signs that things are improving, though.
Not long ago, many of the casino-resorts in the city began resuming 24-hour operations. That includes several of MGM Resorts’ biggest properties. Many took that as a signal that these casinos are expecting a new surge of tourism.
January proved to be a fairly successful month for Las Vegas. The casinos on the Las Vegas Strip earned an astounding $320 million throughout the month. That represents a significant increase from December.
Things aren’t completely back to normal, though. The revenue earned in January is still down almost 44% when compared to January of 2020. It’s no surprise, as that was still before the state ordered all casinos to shut their doors.
When considering that casinos are still operating at just 25%, these revenue figures are impressive. Many believe that the upward trend will continue throughout 2021. It’s fantastic news for the huge number of casino companies here.
It seems that these revenue increases are affecting stock prices, too. Several major companies saw their share prices jump this week.
LV Casino Companies Experience Another Jump in Stock Prices
Prior to March of 2020, the US casino industry was surging. Casinos in Las Vegas were seeing major increases in tourism and gaming revenue. The city was set to welcome several exciting new casino-resorts, too.
After Governor Sisolak ordered casinos to shut down in March, this city’s tourism and gaming industry almost completely shut down. Very few individuals were making the trip to Vegas through mid-2020. Fortunately, things are beginning to improve.
Casino companies are seeing the optimism reflected in their share prices. Many of these companies now have stock prices not seen since January of 2020. Infection numbers are declining and more people are visiting Las Vegas. That gives many analysts hope that the city can begin to truly recover as the year continues.
Craig Johnson, a chief market technician for a major investment bank, gave his take on this situation to the media this week.
“I would just put it all under one word: hope,” he said. “The market is a forward-looking mechanism looking forward to six to nine months ahead of time. And I think (these companies’) stock is a bit of a leading indicator and certainly reflective of more needles going in arms. As soon as things really start to open up again, I think Vegas is going to be a clear destination where people are going to want to go first. (The) pick up in stock price is really just reflective of the hope of things reopening and people going on vacation, having an experience in Las Vegas.”
Many different industries are seeing an increase in stock prices. Airlines, for example, are also seeing a jump in their stock prices right now. This all comes from a growing hope that travel will begin increasing soon.
It seems as if Las Vegas is on the brink of a major comeback. If things continue the way they currently are, regulations could be lifted in Las Vegas and a surge of new tourists could be seen. We’ll be sure to report on this situation over the next few months!
The Opening of Resorts World Las Vegas is Almost Here
Las Vegas is home to most of the world’s best casino-resorts. Most of them are located on the Las Vegas Strip. It’s here that massive properties such as The Cosmopolitan, The Venetian, and Caesars Palace are located.
This summer, Resorts World Las Vegas will finally open its doors in the northern area of the Strip. This is the most expensive casino-resorts ever built in this city. Many analysts believe this will end up being the best new gaming venue in the city.
The owners of this property recently announced they needed to fill thousands of jobs. It didn’t take long for this news to reach residents in Las Vegas. Reports claim that tens of thousands of applications flooded in for jobs inside the new casino-resort.
More details about this property are coming out. News recently broke that Resorts World has just signed a deal with Fred Segal to unveil a new retail space inside this new property. This shopping area is expected to rival the Forum Shops at Caesars Palace.
Hopefully, Resorts World will help to boost tourism in Las Vegas even more. This is one of the first new casino-resorts opened on the Strip in years.
Are you surprised to hear that LV casino companies are seeing their stock prices increase? Let us know in the comments section below!