Shares of Wynn Resorts Ltd. (WYNN) took a 7.7% hit in morning trading on Friday. Despite beating third-quarter earnings expectations, disappointing results from Wynn Macau Ltd. (WYNMY) caused the decline. Wynn’s stock is now headed for its lowest close since December 30, 2022.
Lowest Close in Years
According to Dow Jones Market Data, this decline is also the biggest one-day drop since October 10, 2022, when the stock tumbled 12.3%. Furthermore, it represents the worst weekly performance since the week ending October 14, 2022, with a decrease of 9.8%. On Friday, Wynn Resorts Ltd. was also the second-worst performer in the S&P 500 (SPX).
Wynn Macau Also Takes a Hit
In addition to Wynn Resorts Ltd.’s decline, Wynn Macau’s U.S.-listed stock slumped by 9.6%. The disappointing results from the company, where Wynn Resorts owns a 72% stake, contributed to this decrease.
Steven Wieczynski, an analyst at Stifel, reduced his price target on Wynn’s stock from $135 to $125 but maintained his “buy” rating. He advised investors to be “aggressive buyers” during this selloff, emphasizing that Wynn Resorts provides a “compelling alternative” for those concerned about the health of the U.S. consumer.
Over the past three months, Wynn shares have dropped by 19.7%, while Wynn Macau’s stock has lost 23.3%. In comparison, the S&P 500 has experienced a more modest decline of 2.5%.