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Las Vegas Sands Partners With Marriott: Will the Latest Partnership Propel LVS Stock Higher?

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs

Las Vegas Sands Corp. is seeing positive trading momentum with stocks up by 2.71 percent on Tuesday. This uptick is driven by optimism surrounding the company’s recent strategic partnerships and favorable earnings reports. Investors are particularly buoyed by recurring strong performance in its Asian markets despite global economic uncertainties, bolstering confidence in future growth and stability.

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  • Shares of Las Vegas Sands soared following the announcement of a partnership with Marriott International to introduce The Luxury Collection brand in Macao.
  • The collaboration is estimated to elevate the luxury hospitality landscape in Macao, enhancing Sands China’s portfolio and strengthening its market presence.
  • Analysts maintain mixed ratings for LVS, with Morgan Stanley adjusting the price target amidst stock volatility.

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Live Update at 09:06:30 EST: On Tuesday, October 01, 2024 Las Vegas Sands Corp. stock [NYSE: LVS] is trending up by 2.71%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Overview of Las Vegas Sands Corp.’s Recent Earnings Report and Financial Metrics

In the fast-paced world of gaming and hospitality, Las Vegas Sands (LVS) continues to remain a formidable player. Their recent venture aimed at introducing The Luxury Collection brand in Macao with Marriott International is a testament to their unwavering commitment to luxury and innovation. Before diving into what this partnership could mean, let’s quickly glance at LVS’s latest earnings.

On Jun 30, 2024, LVS reported revenues of approximately $2.76B for Q2 2024. This represents a significant income inflow, but total revenue alone doesn’t paint the whole picture. The gross profit margin, a key indicator of a company’s financial health, stands at an impressive 52.6%. The revenue per share stands at 14.08, showcasing the company’s ability to generate value for its shareholders.

When reconciling the earnings report, one can’t help but notice the eye-catching EBITDA of $1.11B. Though marked by highs like these, LVS faces an imposing debt landscape with long-term debt reaching $12.80B. Even amidst this borrowing, LVS’s operating cash flow remains robust at $814M, underpinning its capacity to finance operations effectively.

Yet, a well-rounded perspective requires attention to the finer details. The price-to-earnings ratio (P/E) of LVS at 23.04 falls short of painting LVS as excessively overvalued, allowing some breathing room for potential upward movement in its stock. Moving deeper, the company’s free cash flow stands at $534M, solidifying its potential to fund expansions and mergers, like the one with Marriott.

LVS appears to balance a juxtaposition of substantial debt with strong revenue streams and operational robustness. However, the variables affecting market sentiment, particularly this new ventured collaboration with Marriott, are what will likely dictate short-term stock movements.

More Breaking News

Ripples of The LVS-Marriott Partnership: Elevating Macao’s Hospitality Landscape

The riveting story takes an upscale turn as Las Vegas Sands partners with Marriott International. The collaboration is set to launch The Luxury Collection brand hotel at The Londoner Grand in Macao by Jan 2025. This strategic move is aimed at enhancing Macao’s luxury hospitality.

This new chapter in LVS’s journey could be a game-changer. The uptrend seen in LVS shares, which surged significantly post-announcement, reflects market optimism. Analysts foresee this partnership boosting Macao’s tourism and leisure sector, nurturing a lucrative revenue stream.

Unpacking the Key Financial Ratios and their Market Implications

Analyzing the key ratios provides a vivid narrative of LVS’s market standing. Their EbitMargin at 27.1% is formidable, indicating strong operational efficiency. Though the pretax profit margin sits ominously at -0.8%, the profit margin cont, a reflection of net profits, is a reassuring 16.79%.

Further, the total assets to liabilities ratio around 1.23 connotes solid financial health, ensuring mitigated risks amidst expansions. The leverage ratio of 5.6 indicates substantial use of borrowed capital, a typical scenario within industry giants harboring large-scale investments.

In terms of enterprise value, LVS hovers at about $46.67B, portraying a significant market footprint. This, combined with their gross profitability and robust cash flow, sets the ground for strenuous yet potential growth ahead.

Confronting the Elements: Impact of Market News on LVS Stock Price

Marriott Collaboration in Macao

The partnership with Marriott International should not merely be seen as another feather in the cap for LVS; it’s a strategic leap. This union aims to elevate Macao’s profile in the global hospitality map. The impact on LVS’s stock was instantaneous, driving shares upward and solidifying investor confidence.

Such collaborations usually have a domino effect: enhanced brand presence, tapping into Marriott’s customer base, and creating unparalleled luxury experiences. Analysts are optimistic about the revenue potential this brings to LVS, making Macao a world-class leisure hub.

Altered Price Targets and Analyst Outlook

While market excitement surrounds this merger, the analysts’ tone is somewhat reserved. Morgan Stanley adjusted their price target for LVS from $55 to $50 but maintained an overweight rating. Such recalibrations often echo caution mixed with optimism, urging investors to tread carefully while pondering long-term prospects.

Strategic Investments and Market Responses

Decisions like increasing stakes in Sands China augur well for the conglomerate’s footprint, providing much-needed downside protection. It’s steps like these that fortify LVS against potential market tumbles, aligning with their broader strategy of solidifying their presence in Asia’s blossoming markets.

Conclusion: Setting the Stage for Future Movements

Las Vegas Sands, with its strategic maneuvers, showcases a blend of prudent investments and ambitious partnerships. The recent collaboration with Marriott International marks a milestone in their journey, potentially reshaping Macao’s luxury landscape. While stock volatility remains a part of the game, LVS’s robust financial metrics and visionary steps provide a tale of resilience and forward-thinking.

As we chart the course for LVS, the harmony between their financial integrity and strategic aspirations paves a prospective pathway. Whether you’re an investor, trader, or industry observer, LVS’s story is one that promises a myriad of exciting chapters ahead.

The final headlines for you to chew on: LVS’s financial health is on solid ground with consistent revenue streams and strategic debt management. The Marriott partnership could potentially escalate Macao’s luxury landscape, providing LVS a buoyed market position amidst both praise and skepticism from financial analysts.

In summary, the future of Las Vegas Sands resonates with promising notes amidst cautious speculation, charting a course that awaits exploration, growth, and undoubtedly, nuanced maneuvering within the market tides.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”