Owner of Mandalay Bay Lost Almost A Billion Dollars After The LA Shooting
It is very unfortunate that there were a lot of casualties surrounding shooting at the Mandalay Bay in Las Vegas. The prime loss we mourn are the lives of the innocent civilians but the incident has, quite interestingly, also affected the owner of Mandalay Bay Hotel who lost almost a billion after the shooting.
Police officers have already said that the 64-years-old Stephen Paddock killed no less than 58 people, also wounding more than 500, in a mass shooting at the Route 91 Harvest Festival at the Mandalay Bay in Las Vegas. But more strange of an effect is surely the $909 million in market capitalizations on Monday lost by the giant casino behind the hotel.
The shares of MGM Resorts International have fallen by 5% in trading by Monday.
After Paddock opened fire at the concert goers from the 32nd floor of the nearby Mandalay Bay Resort and Casino, the market capitalization of the casino dropped to $17.8 billion. That’s a lot of money to lose!
This led to the casino management companies’ sell-off with heavy presences on the Las Vegas Strip with all the shares falling. The shares that fell were those of Red Rock Resorts, Caesars Entertainment (czr), Boyd Gaming (byd), and Wynn Resorts (wynn) after the news spread.
By midday on Monday, all five casinos and hotel companies have already shed a total of $1.8 billion from their market capitalizations as for the shooting incident and many tourists were concerned whether to come back to the strip after the incident. While there is a lot of declining shares going on on the Las Vegas strip, the gun stocks rose after the incident!
This raises the concern of the safety of people, where logics about a shooter being able to wreak havoc and kill a lot of people out of nowhere before a counterattack would even be prepared surely exists.
The overall stock market as measured by the S&P 500 rose up to 0.15 % in trading on Monday morning.
The shares of Red Rock fell nearly 2%, Wynn has fallen to nearly 2%, Caesars Entertainment has fallen about 0.4%, while the Boyd Gaming Corp has shed 0.7%.
The MGM resorts have released a statement on Monday for the loss that happened and their prayers for the victims of the tragic event as well as how they are grateful to the first responders.
Roughly, 57% of the total operating income in 2016 has been accounted by Las Vegas Resorts for MGM with $1.2 billion.
The losses of MGM were still contained relatively since its stocks haven’t jumped 19% over the past year due to its performance in Las Vegas. MGM has been diversifying after an unforgettable incident of near-bankruptcy and financial crisis. The bulk of MGM’s revenue has been also accounted by Las Vegas. Investors are currently looking into the expansion of the casino management firm on the East coast of the United States and Asia in the future.
All these losses were due to the unfortunate shooting of a retiree and accountant, Stephen Paddock. It was at Mandalay Bay Resort and Casino where Paddock checked in last Thursday. Who would have thought it would change a lot of lives forever?
Booked in room 32135, according to the Las Vegas Metropolitan Police Department Sheriff Joseph Lombardo, the room was a large suite where the views of the Las Vegas Strip was uninterrupted.
The room had a clear view of Route 91 Harvest Festival where a three-day country music event was taking place, some 400 yards away from the hotel in a ground-level venue across the Strip. You can only imagine how the tourists and customers were concerned regarding the safety of the establishments. A crowd of 22,000 people was listening to headliner Jason Aldean on a Sunday night when Paddock suddenly smashed two of the windows in his suite, the one in front and the other in the corner. He fired into the crowd and accounted 58 killings and over a hundred injured people. It is understandable that the owner of Mandalay Bay suffered a loss of almost a billion dollars since the incident was the deadliest mass shooting in the modern United States History.
Is staying at Mandalay Bay resort an option after the tragedy? We’d like to hear your thoughts…
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