Is Investing in Gaming Stocks a Gamble?
Gambling stocks are looking like more of a gamble these days.
It’s always been somewhat of a rollercoaster ride when it comes to investing in gaming stocks. This headline-grabbing industry has attracted hedge funds and short term traders that are quick to buy and dump shares on a whim.
Casino stocks were hitting a high a few months ago when forecasts of out of Macau, which is building an Asian version of the Las Vegas Strip but in one tenth of the time. However some lost 30-50% of their value when Macau gaming revenue – 40 to 50% ahead of a year ago, fell short of Wall Street expectations.
Some of the analysts whose forecasts fueled last year’s Macau backlash now say that gaming stocks are a good buy.
There is little evidence so far that real estate prices on the Strip, which rose last year even as the housing market sunk – are dropping.
Las Vegas is attracting even richer developers, including foreign conglomerates, willing to risk more of their own money.
No matter how you invest, like always, it’s going to be unpredictable no matter who is doing the predicting.
