The announcement by South Nevada Health Officials yesterday that a man has tested positive for Coronavirus in Las Vegas sent stock values of all gambling related companies that have casinos there tumbling.
Many stock market investors saw that as a red flag and started selling their shares in those companies as soon as the announcement was made, which compounded matters somewhat. However, savvy long-term investors saw that as an instant opportunity to pick up shares in those companies for a much-reduced price.
There is no doubt that whilst the virus is likely to continue spreading and infecting more and more people, it is the travel industry that is currently being hit the hardest. Many airlines are currently experiencing massive drops in their customer numbers, and many hotels and resorts in major holiday destinations are also experiencing a massive drop in bookings too.
As for just which companies saw their share values drop yesterday, well two that did experience double digit percentage drops were MGM Resorts International with an 11.5% drop along with Red Rock Resort, whose shares dropped an enormous 13.86% once traders got wind of the first recorded Coronavirus infection in Nevada.
Las Vegas Sands Corp. Caesars Entertainment Corp. Boyd Gaming Corp. and Wynn Resorts Ltd. All experienced a drop in their share values too, and those share values could continue to tumble if any more infections are announced.
Surprisingly though, rather than offers reduced room rates in the hope of ensuring their rooms and suites are fully occupied, or at least keep customers booking, many Vegas casino resorts are increasing their resort fees to offset the downturn in bookings.
That weird logic is going to hit many casino resorts hard, for it does smack of corporate greed, and is sure to backfire on many of them for sure.