Wednesday’s Headlines: China Casino Stocks Crash

Wednesday’s Headlines: China Casino Stocks Crash

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Atlassian (TEAM) +3.4%

Sea Limited (SE) +3.2%

Datadog (DDOG) +2.1% (BILL) +2.1%

Intuit (INTU) +1.9%

Moving Down ⬇️

Wynn Resorts (WYNN) -10.9%

Baozun (BZUN) -4.6%

Bumble (BMBL) -4.3%

ShotSpotter (SSTI) -4.0%

Teladoc (TDOC) -4.0%

1. As China eyes tougher regulations, Wynn Resorts (WYNN) shares fell almost 11% yesterday as casino operator stocks with major exposure to Macau tumbled. The autonomous region on the south coast of China, which is known as the "Las Vegas of Asia", is proposing tough new rules, including calls for the removal of the current sub-concession system, which is basically their gaming licenses, and the appointment of government delegates to govern gaming operators. In 2002, Macau granted three gaming concessions, one of which was given to Wynn Resorts and included the company’s subsidiary. These current concessions expire next June and while they can be extended by five years, industry experts think three years is more likely. As the number of future gaming concessions and their duration are under threat, investors are panic selling Wynn Resorts stock. Get the full story here

2. To keep sales momentum high at its annual fall product event, Apple (AAPL) announced new iPhone models which tout improved battery life as a key selling point. Ahead of the holiday shopping season, the tech giant presented the new iPhone 13, which critics say have no major advances compared to last year’s versions which gained 5G connections and a flatter design. The emphasis on longer battery life shows the challenges Apple faces in a maturing market, where big breakthroughs in technology are becoming less frequent. Still, increasing battery life by between 90 to 150 minutes will alleviate one of iPhone users biggest complaints. A 2019 survey reported that 76% of iPhone owners said longer battery life would get them excited about a phone upgrade which should help boost sales. See more on the story here.

3. Across the Big Tech pond, Microsoft (MSFT) is also making some important announcements, namely a $60 billion share buy-back scheme. The software leader stated that the buyback program has no expiration date and may end at any time. Shareholders usually see share buybacks as a positive sign for appreciation in the future and as long as Microsoft keeps growing, it can be a profitable action for the company. On Tuesday, the firm also added that it is raising its quarterly dividend by 11% to $0.62 per share. Microsoft also announced a major shift in its organization, declaring that company President Brad Smith, who played an integral role in helping Microsoft battle recent antitrust cases, will be appointed Vice Chair. Read the full story here.


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