Wynn Resorts Shares Plunged: What You Need to Know


Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of casino operator Wynn Resorts (NAS: WYNN) fell 10% in intraday trading today on worries of a slowdown in China.

So what: A poll by Bloomberg said that investors, analysts, and traders expect China's growth to slow to less than 5% by 2016. Since Wynn counts on China for most of its profit and growth, it could be a big blow to them and other companies with casinos in Macau.

Now what: Gaming growth has been astronomical in Macau partly because of a fast growing Chinese economy. So if economic growth slows, that's bad for Macau. But if we put this into a little bit of context, gaming revenue grew 57% last month, so a slowdown isn't the end of the world. The pressure may continue on stocks like Las Vegas Sands (NYS: LVS) and Melco Crown (NAS: MPEL) , but I think the coming weeks will provide more of a buying opportunity than a reason to panic.

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At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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