Why Eldorado Resorts Stock Leaped 65% in May

Shares of casino operator Eldorado Resorts (NASDAQ: ERI) rose a breathtaking 65% in May, according to data from S&P Global Market Intelligence. Although a price gain of that level for an established company is astounding, at the end of the month the stock was still down 40% from the start of the year. Much of the reason why it was still down after such a rise is that, at one point in March, Eldorado Resort's share price had declined nearly 90%.

Eldorado Resorts business was effectively shut down by the government's efforts to contain the spread of COVID-19. The closure of non-essential businesses, like casinos, and the effort to get people to practice social distancing, resulted in investors fleeing the casino company's stock. That accounts for the deep downturn, which was justified in some ways given the uncertainty of the environment and the fact that revenue basically went to zero overnight.

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Source Fool.com