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Las Vegas Sands’ Strategic Moves Bolster Stock Amid New Macau Partnership

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs

Las Vegas Sands Corp.’s stocks are experiencing a notable rise, driven by positive sentiment surrounding their latest ventures and financial performance. Critical news reports highlight the company’s strategic developments and strong quarterly earnings, which have particularly captivated investor interest. Reflecting this positive momentum, on Friday, Las Vegas Sands Corp.’s shares have been trading up by 4.11 percent.

Quick overview of Las Vegas Sands’ recent activities:

Candlestick Chart

Live Update at 08:46:54 EST: On Friday, September 27, 2024 Las Vegas Sands Corp. stock [NYSE: LVS] is trending up by 4.11%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • The Sands Shopping Carnival marked its fifth year with record attendance and participation, emphasizing commitment to local businesses and community support.
  • Las Vegas Sands increased its stake in Sands China, reflecting strategic investment and support for downside protection.
  • Las Vegas Sands shares surged following the announcement of a partnership with Marriott to launch The Luxury Collection brand in Macau.
  • A new Luxury Collection Hotel by Sands China and Marriott is set to open in January 2025, aiming to enhance Macao’s luxury hospitality landscape.

Las Vegas Sands’ Financial Performance and Earnings Overview

Las Vegas Sands Corp. recently reported a robust quarterly performance that appears to have caught the market’s attention. The stock closed at $50.37 on Sep 27, 2024, reflecting a notable upward trend. What’s driving this momentum? It’s a combination of strategic partnerships, solid financials, and effective risk management.

Key Financial Ratios and Comments

The company’s revenue stands at $10.37 billion with a gross margin of 52.6%, showcasing its efficiency in managing costs relative to its sales. Despite a pre-tax profit margin of -0.8%, the profit margin continued operations at 16.79%, indicating positive returns after accounting for taxes and interest. The EPS has been resilient, with a current PE ratio of 22.15. Gross profit posted at 52.6% suggests a healthy markup on goods and services. Financial strength metrics like a current ratio of 2.5 and a quick ratio of 1.5 depict strong liquidity, ensuring the company can meet short-term liabilities.

Strategic Investments Through Partnerships

Las Vegas Sands’ recent collaboration with Marriott to introduce The Luxury Collection brand in Macao stands out as a game-changer. Expected to open in January 2025, this new offering underscores Sands China’s strategy to refine its portfolio and heighten Macao’s status as a top-tier tourism and leisure destination. This strategic move aligns with Sands China’s past performance in hosting cultural and entertainment events that support local enterprises.

More Breaking News

Earnings Summary and Market Reactions

The financial report for Q2 2024 reveals a remarkable operational backdrop. With an operating income of $591 million, Las Vegas Sands has shown its capability to maintain control over operational expenses. Although the net income was $353 million, it reflects continued profitability even amid global challenges. Notably, headline-grabbing partnerships and proactive risk management have assuaged investor concerns, as seen in their intraday and closing prices.

How Strategic Moves Are Shaping Stock Performance

The Sands Shopping Carnival’s Impact:

A record turnout at the annual Sands Shopping Carnival has underscored Las Vegas Sands’ role in supporting local businesses and communities. This event aligns with its broader strategic initiatives aimed at enhancing cultural and environmental programs, which have outperformed investor expectations in both attendance and participation.

Increased Stake in Sands China:

The strategic decision to increase its stake in Sands China reflects a confident bet on the Asian market’s resilience. This investment has provided downside protection, signaling a robust vote of confidence in Sands China’s long-term prospects.

Marriott Partnership for The Luxury Collection:

The news of a partnership with Marriott International to launch The Luxury Collection brand in Macau has led to an immediate and significant surge in Las Vegas Sands’ stock, which climbed 6.1% intraday. The collaboration with Marriott aims to open the Londoner Grand—a luxury hotel—by January 2025. This strategic alignment is expected to elevate Macao’s tourism and luxury landscape, offering authentic experiences and premium services.

Financial and Asset Strength:

Las Vegas Sands has shown a strong cash position with $4.71 billion in cash and equivalents. Key ratios and metrics such as total debt to equity at 3.66 and return on investment at 12.01% indicate a solid financial base. Despite the long-term debt of $12.81 billion, the company’s strategic financing and investment activities suggest sound risk management and growth-oriented outlook.

Market Movements and Predictions

The latest partnership news, along with consistent financial performance, has propelled Las Vegas Sands’ stock price upward. Here’s a deeper dive into its potential market implications:

Stock Price Surge Today:

Las Vegas Sands’ stock movement today is a natural follow-through of recent investor confidence bolstered by strategic initiations. A 5% surge can often imply substantial trade volumes and heightened interest, likely driven by the company’s partnership announcements and robust quarterly results. This movement isn’t merely reactionary but rather a cumulative result of consistent, strategic efforts to strengthen its market position.

Analysts’ Take:

Morgan Stanley’s update, while modestly reducing the price target, maintains an Overweight rating. This balanced perspective highlights Las Vegas Sands’ ability to navigate market headwinds and capitalize on new opportunities. Analyst ratings consistently point to outperform, suggesting a broader market optimism about the company’s future performance.

Conclusion and Final Thoughts

Las Vegas Sands has masterfully leveraged strategic partnerships and maintained strong financial health to navigate the complexities of the market. Whether it’s the Marriott collaboration or continued community engagement, each move underscores a well-thought-out strategy aimed at sustained growth.

The stock’s recent surge following these announcements and positive earnings reports reaffirms that Las Vegas Sands remains a strong contender in the luxury and tourism industries. As investors look ahead, the opening of The Luxury Collection in Macao and the ongoing support for local businesses mark significant milestones likely to shape the company’s trajectory in the coming months.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”