Why Eldorado Resorts Stock Jumped as Much as 13% on June 4?
What happened
Shares of casino operator Eldorado Resorts (NASDAQ:ERI) were up by roughly 13% at 2 p.m. EDT on Wall Street. It was industrywide news that led to investors' upbeat mood here. However, there is an important company-specific difference with regard to Eldorado that you need to understand.
So what
Casinos are most definitely not an essential business, since nobody needs to gamble. So, when the United States was attempting to contain the spread of COVID-19, gaming establishments like Eldorado found themselves completely shut down. The coronavirus can spread easily in group settings, so that decision made a great deal of sense. Now that COVID-19 seems to be better contained, non-essential businesses like gambling are being allowed to reopen, with limits and due precautions. Today was the big day for Las Vegas, and investors rightly got excited, pushing the shares of companies like MGM Resorts, Caesars Entertainment, and Wynn Resorts higher. Only Eldorado's gains were much larger than the mid-to-high single-digit gains these stocks witnessed
Finviz
What happened
Shares of casino operator Eldorado Resorts (NASDAQ:ERI) were up by roughly 13% at 2 p.m. EDT on Wall Street. It was industrywide news that led to investors' upbeat mood here. However, there is an important company-specific difference with regard to Eldorado that you need to understand.
So what
Casinos are most definitely not an essential business, since nobody needs to gamble. So, when the United States was attempting to contain the spread of COVID-19, gaming establishments like Eldorado found themselves completely shut down. The coronavirus can spread easily in group settings, so that decision made a great deal of sense. Now that COVID-19 seems to be better contained, non-essential businesses like gambling are being allowed to reopen, with limits and due precautions. Today was the big day for Las Vegas, and investors rightly got excited, pushing the shares of companies like MGM Resorts, Caesars Entertainment, and Wynn Resorts higher. Only Eldorado's gains were much larger than the mid-to-high single-digit gains these stocks witnessed
Finviz