Major Casinos are Feeling the Impact of the Coronavirus

The coronavirus has had an impact all over the world it seems and Wall Street was no exception to getting hit.

Casino stocks in particular, especially Vegas gaming companies and resorts, were hit hard recently after they announced closures to help stop the spread of the virus.

Wynn Resorts shares saw a drop of 24% the day after announcing it would be temporarily shutting its Las Vegas and Boston properties for at least two weeks. MGM shares also dropped 33% after making a similar announcement and Harrah’s, Bally’s and Caesars Palace owner Caesars Entertainment also dropped significantly on the suspension of live events at its properties.

Not every casino operator felt the need to close down. Palms owner Red Rock Resorts instead announced plans to increase the frequency of its gaming floor and resort cleanings while limiting capacity at some of its restaurants and gaming tables. The company said that all slot machines will now be cleaned every two hours.

There has been over 50% monthly losses in MGM’s, Wynn’s, and Caesars’ respective share prices and according to Gerber Kawasaki Wealth & Investment Management CEO Ross Gerber, this could present a buying opportunity.

“Be patient here because it’s going to take three months to get this market to work this recession in correctly, but boy, oh boy this is as good as it gets for stock pickers like me,” said Ross Gerber to Yahoo Finance.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.