Gaming Stocks Outperform Market Despite Wall Street Sell-Off
Gaming stocks outperformed the broader market last week, even as the S&P 500 ended its eight-week winning streak and fell by more than 2.5%. While many sectors came under pressure during Friday’s market sell-off, the Roundhill Sports Betting & iGaming ETF gained almost 1%.
MGM Resorts was one of the strongest performers in the sector. Its shares rose nearly 9% after People Incorporated, formerly known as IAC, submitted an offer to buy the remaining shares of MGM Resorts for $48.30 per share. The proposal values the company at around $18 billion. MGM said its board will review the offer and decide what course of action is in the best interests of shareholders.
Boyd Gaming also gained more than 6% after Texas Capital Securities initiated coverage with a Strong Buy rating and a $106 price target. Analysts pointed to Boyd’s valuation, moderate leverage, and potential ability to pursue acquisitions as reasons for optimism.
Entain shares also rose, supported by speculation around BetMGM, the joint venture it operates with MGM Resorts. Analysts suggested that any change in MGM’s ownership structure could lead to a reassessment of BetMGM’s future.
Not all gaming stocks followed the positive trend. Corsair Gaming dropped more than 25% after a downgrade and profit-taking following its recent rally. Playtika Holdings fell over 18% amid concerns about weak growth and its balance sheet.
The sector also saw major deal activity, including Bally’s Intralot agreement to acquire Evoke, the parent company of William Hill and 888.
