A new preliminary data by Pfizer Inc. has revealed a new vaccine that shows 90% success in protecting against COVID-19, sending Nevada casino operators’ stock up.
News of Vaccine Send Casino Stock up in Nevada
Just like any other asset, casino operators’ stocks have been prone to jump on good news and slump at the first sign of disruptive events. The beginning of the year seared a deep scar into the pricing of casino stock with the novel coronavirus locking the whole world down. This may soon be changing.
First, it was the news that Joe Biden would most likely be the 46th President of the United States, replacing the incumbent, President Donald Trump and his clique of casino moguls who have long wagered a war on some forms of casino gambling and now, more good news come from the pharmaceutical sector.
Following the Monday announcement that Pfizer Inc. had discovered a vaccine that is effective at over 90% in preventing covid-19, casino operators have been on the up-and-up. Both Wynn Resorts Ltd. and MGM Resorts International, which operate properties outside of the United States, have seen the biggest increases posting 27.7% and 14.9% jumps respectively.
Commenting for the Las Vegas Review Journal, UNLV’s College of Hospitality assistant professor Amanda Belarmino said that a vaccine would finally make traveling a possibility, restarting entertainment events and casino gaming to its fullest.
Yet, there may be a long way to go until Pfizer is able to begin mass vaccination, not only because the data presented by the company is preliminary, but also because there is a lot of red tape to negotiate with the government.
Casino Stock to Continue Oscillating
Wynn Resorts’ Debra Nutton, a former executive, said that the announcement was “big news for everyone,” especially given the fact that Las Vegas relies on tourists and crowds of people to fuel its economy.
This is the first good news, other than the partial reopening of casinos in Nevada in June, affecting the stock significantly. Other beneficiaries were Caesars Entertainment which reported 10.9% increase on Monday.
Throughout the entire pandemic, though, the company’s share price has see-sawed wildly, between $6.02 and $74.92. Red Rock and Boyd Gaming Corp. posted around a 3% increase with their activities mostly focus off the Las Vegas Strip.
Meanwhile, Las Vegas Sands Corp., owned by Sheldon Adelson who decided to keep paying his workforce in full during the pandemic, saw a 9.2% jump on Monday.
LVS is one of the companies that rely on conventions for its results, other than casino gaming. Conventions aside, LVS sees over 87% of its revenue come from Asia, making the company quicker to recover and less dependent on a single revenue stream.
Without an immediate follow-up to the vaccine announcement, the stock is likely to continue oscillating until a more permanent solution is found. Pfizer’s vaccine is part of a total of 11 vaccines in Phase 2. So far, 6 vaccines have reached Phase 2 and none has been approved for use en masse and deemed completely safe.