Wynn Resorts stock price went parabolic and reached its highest level since October 2024. It has jumped by over 56% from its lowest point this year, giving it a market capitalization of over $10.6 billion.
Wynn stock jumps as Macau growth continues
The main reason why the Las Vegas Sands and Wynn stock prices surged was that Macau’s gambling regulator delivered a highly bullish statement. In its monthly report, it said that casino revenues jumped by 19% in June to about $2.1 billion.
The industry grew by about 4% to 118.77 billion Macanese pataca in the first half of the year, continuing a trend that started after the pandemic. This is notable for Wynn because, while it is an American company, it makes most of its money in Macau.
As such, investors hope that the company’s second-quarter revenue growth will likely be better than its guidance.
The most recent results showed that Wynn Resorts’ revenue came in at $1.7 billion in the first quarter. This revenue figure was about $162.5 million lower than what it made last year.
The revenue decline during the quarter was because its 2024’s figures benefited from the Super Bowl event. Historically, venues like hotels benefit substantially when an event as big as Super Bowl comes to town.
Read more: Wynn Resorts stock: “firing on all cylinders”
Wall Street analysts anticipate that Wynn Resorts’ second-quarter revenue will be $1.73 billion, flat from the same period last year. They also expect its third-quarter revenues to be $1.72 billion, up by 1.57% YoY.
For the year, Wynn Resorts is expected to make $6.9 billion, followed by $7.16 billion in the following year.
Historically, casino stocks are usually slow-growing companies because of the limited growth prospects in the sector. Wynn, unlike other companies, has a key catalyst that could drive its stock higher over time.
The company is building the Al Marjan Island building in the United Arab Emirates. This construction is growing rapidly, with the building being in the 47th floor.
Al Marjan Island will have a near monopoly in a region that is attracting wealthy people from around the world. These people prefer the UAE because of its peace, transparency laws, and low taxes.
Wynn is also targeting to expand in Bangkok, Thailand as it debates the Entertainment Complex Business Act, which will be tabled in parliament soon. Wynn believes that Thailand is an exciting market because of its tourism business.
The other bullish aspect for the Wynn stock price is that the management is slashing its outstanding shares through buybacks. It has over 105 million shares, down from 113 million in 2023.
Wynn share price technical analysis
The daily chart shows that the Wynn share price bottomed at $65 in April and then bounced back to the current $101.95. Most importantly, it has formed a highly bullish pattern known as an inverse head-and-shoulders.
The head section of this pattern is at $65, while the shoulders section is about $80. This pattern often leads to more upside over time.
The stock has formed a golden cross pattern as the 50-day and 200-day moving averages have made a bullish crossover. Therefore, the stock will likely continue rising as bulls target the key resistance level at $108, the highest swing in April 2024.
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