The coronavirus continues to take a major toll on the gambling industry. Casinos across the United States are being forced to close down. Interestingly, some now believe that this is the perfect time to buy casino stock.
Not everyone is interested in investing their money right now. For many, the coronavirus is already taking a major financial toll. Today, we’re going to look at how this virus is affecting casino workers, and discussing why some feel it’s the right time to put money back into this industry.
Let’s get into it!
Casinos Around the US Have Closed
As you probably know, the new coronavirus called Covid-19 has now spread around the entire country. In just a few weeks, it’s known to have infected more than 11,000 individuals. Due to the lack of mass testing available, it’s possible that many more actually have the virus.
Every state is taking its own approach to this virus. Some, like Florida, are taking a relaxed approach, allowing beaches to remain open. Many have condemned lawmakers in the state for not doing enough to stop the spread.
Other states are taking some extreme measures. In the San Francisco Bay Area, thousands of individuals are now legally required to self-quarantine at home. Nevada has officially called for all casinos and restaurants to close to the public.
In fact, many states are now forcing their casinos to shut down. This is proving to be devastating for a huge number of employees. The casino companies themselves are also losing millions of dollars every day due to these new regulations.
Unfortunately, it’s unclear when exactly things may begin to improve. Estimates vary, yet most agree that things will get considerably worse before they get better.
Some Believe Now is the Time to Buy Casino Stock
The US stock market has dropped faster than ever before. Many government officials believe we are now heading into a global recession. Some financial institutions actually claim this is a good time to begin investing money back into the stock market.
As we just mentioned, many casino companies are experiencing incredible drops in their stock prices. For this reason, certain individuals are encouraging people to buy casino stock. Shaun Kelley, a financial analyst, says he’s making this decision based on updated 2021 recession-level earnings outlooks.
“That said, our stocks are already pricing in significant liquidity concerns and we have long been aware of the financial/operational leverage in these companies,” Kelley said.
Many casino companies with ties to Macau present good investment opportunities, he says. Not everyone agrees, though. Some feel that based on the way things are going, it’s best to avoid making any major investments.
Casino Companies Are Now Asking for Help From Congress
Despite some analyst’s calls to buy casino stock, things are still looking very grim for many of these companies. MGM Resorts International, Wynn Resorts, and Las Vegas Sands have all been forced to close down the majority of their gambling venues. Some are now asking for financial relief from Congress.
Earlier this week, several casino companies officially began requesting emergency aid. The American Gaming Association claims this situation is pushing many companies to the brink of collapse.
The AGA also points out how many individuals are at risk of losing their jobs. As more regulations are made across the country, more jobs inside casinos are likely to be lost.
It’s unclear what steps Congress will take to help these companies. Unless the situation improves quickly, however, it’s almost inevitable that some of these companies will fail.
Some feel this is the right time to buy casino stock. Make sure to stay tuned for updates on this situation over the next few months!