Wynn Stock Continues To Defy The Odds

Wynn Stock Continues To Defy The Odds

BRAZIL - 2020/07/04: In this photo illustration the Wynn Resorts logo seen displayed on a ... [+] smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)



SOPA Images/LightRocket via Getty Images

The shares of Wynn Resorts (NASDAQ: WYNN) have been on a bull run since the beginning of this month even as the travel and tourism industry came to a grinding halt due to the pandemic. The company took a string of measures in the second quarter to preserve its cash reserves including cutting capital expenses, suspending dividends, and trimming administrative expenses. Per Q3 filings, Wynn reported $3.5 billion of available liquidity which can support operating losses for more than a year. Thus, we believe that the stock can achieve pre-crisis levels with the initiation of mass vaccination and a gradual recovery in the Macau Gaming Market. We compare Wynn Resorts' stock performance during the current crisis with that during the 2008 recession in an interactive dashboard analysis.

Timeline of 2020 Crisis So Far:



12/12/2019: Coronavirus cases first reported in China

1/31/2020: WHO declares a global health emergency.

2/19/2020: Signs of effective containment in China and hopes of monetary easing