Is Las Vegas Sands About to Become an Unstoppable Growth Stock?
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Casino company Las Vegas Sands (NYSE: LVS), which sold off its Nevada properties and went all-in on Macao and Singapore, reported its third-quarter results on Wednesday. But while many other gambling enterprises are enjoying a vigorous 2021 rebound, Sands' revenue and earnings results were more reminiscent of the metrics it saw during 2020's COVID-19 lockdowns.That's in part due to the Chinese government's restrictions on Macao. The question for investors from here is whether Sands has hamstrung itself with its Las Vegas exit, or whether its triumphant resurgence has just been delayed. The answer, perhaps, is that the situation is a bit of both.While the company traces its origins back to the Sands Hotel built back in the mid-20th-century gangster days of Meyer Lansky and Benjamin "Bugsy" Siegel, who were among those who turned Las Vegas into a U.S. gambling hub, it refocused its business on Macao in the early 2000s under the leadership of Sheldon Adelson. Following Adelson's death, the company sold its last major U.S. properties (except for its headquarters) in March for $6.25 billion. The sale included both its Sands Expo and Convention Center, and its iconic casino and resort, the Venetian. That effectively ended its American operations; it now relies primarily on its Macao and Singapore casinos and resorts for revenue.Continue reading
