In a city where fortune rises and falls with the elusive grace of a tossed coin, Las Vegas, renowned for its seductive glitz and glamour, may find itself overshadowed by the prospects of the Far East’s crown jewel, Macau. A crescendo of exhilaration mounts among casino operators vested in the Chinese territory as they inch closer to reclaiming the zenith of pre-coronavirus glory.
The heart of the matter beats within the expert analysis of CFRA Research’s astute Zachary Warring. His discerning gaze falls favorably upon the gaming stocks tethered to the vibrant pulse of Macau over the neon allure of domestic contenders. The evidence of Macau’s allure lies in the numbers—a staggering resurgence to 395% year-over-year in visitation, notwithstanding the remaining gap to the halcyon days of 2019.
Macau once shimmered with the footsteps of 39.40 million visitors in 2019, a pinnacle not yet reclaimed in these post-pandemic times. A mere 28.21 million ventured to Macau’s grandeur in the shadow of 2023, weaving dreams of attending the glittering halls that await the full revival of festive throngs. It is in this potential, this burgeoning renaissance, where Warring divines a winning hand for Macau’s casino stocks.
Turning to U.S. shores, Warring lends his voice to sing praises for the triad of Las Vegas-based operatives gracing Macau’s domain—Las Vegas Sands, MGM Resorts International, and Wynn Resorts. These brands carry the standard high with bullish “buy” recommendations. Here, Las Vegas Sands stands robust with its tapestry of integrated resorts, courting the favor of diverse gamblers and offering plenteous non-gaming indulgences, all while waxing strong against the tide of fiscal obligations and possible expansions into fresh territories like New York City.
As for Las Vegas, the desert mirage of prosperity may falter in the wake of significant events now past. Warring casts a sober eye upon the Strip, commenting on the fleeting boost from grand spectacles now receding into the annals of yesterday. Even as the Las Vegas Grand Prix readies to wave its checkered flags anew, questions loom on whether its inaugural fanfare can be rekindled to ignite further growth.
MGM, the colossus straddling the Strip, may navigate these uncertain currents through its stake in MGM China, whereas Caesars Entertainment, devoid of Macau’s embrace, charts its own course with only the capricious favor of Las Vegas and its digital ventures to guide it. Warring warns of debt that could ensnare value seekers, yet whispers of potential divestitures to bolster the coffers offer a glimmer of hope amidst cautious forecasts.
The stage is set, and as the world turns on the axis of chance and fortune, all eyes are on Macau. Will it recapture its erstwhile splendor, outshining its American cousin? The wheels of fate are in motion, with casino stocks serving as the chips in this high-stakes game of international allure. The smart money, it seems, follows the rising sun to the east, where the promise of Macau beckons with untapped potential and the thrill of what tomorrow may yet bring.
