Why Melco Resorts Shares Popped 13.5% Today
Shares of Melco Resorts (NASDAQ: MLCO) jumped as much as 13.5% in trading on Tuesday after China announced it was reducing some COVID-19 restrictions. Shares slid slightly from their highs by the afternoon and were up just 8% at 2:30 p.m. ET.
China's strict COVID-19 restrictions are starting to ease in some of the country's largest cities, and that's seen as a good thing for gambling stocks in Macao. Case numbers in Shanghai have fallen, and restrictions on dining and school have been reduced, so it's possible that travel will open up to Macao relatively soon.
The stock move wasn't driven by news of an actual increase in gambling or travel, but rather, speculation that revenue will pick up. Keep in mind that today's bounce can easily reverse if lockdowns take place again.
Source Fool.com
