Wynn Plunges After CEO Sees Similarities With Recession Of 2008
"Management tried to explain the worse-than-expected trend as a loss of confidence especially among premium players," Curtis added, quoted by CNBC. "We agree, but believe that some historic perspective should have been provided: that in markets with slowing economies, players keep visiting casinos and their ability to wager may not be impaired, but their spend/bet declines."
Whatever the reason, today's drop in Wynn shares was the latest hit to company shareholders, who were already nursing a 30% decline in 2018 even before the company's third-quarter results.
While concerns have lingered about whether a dip in economic growth could hit the gambling industry, some have speculated that the culprit is the ongoing bear market in Chinese stocks. The Shanghai composite has slumped 22.8% during the last year, one of the worst performers of the closely followed global indexes. Some has suggested that any improvement in trade relations between Beijing and Washington could help the Chinese economy and Wynn's performance in Macau.