Shares in the casino giant Caesars Entertainment (NASDAQ: CZR) Trading rose as much as 10.9% on Friday after the company announced fourth quarter 2020 financial results. The share closed trading with a daily gain of 9.8%.
Financial results today were only a small part of the story. Revenue of $ 1.5 billion increased 152.9% year over year after the Eldorado Resorts merger was completed. In the same business, sales fell 37.5%. Net loss for the quarter was $ 555 million, or $ 2.67 per share.
Investors focused more on management’s comments on a rebound in the resort and casino business. And Caesars’ management was very optimistic. CEO Tom Reeg said that demand could spike in the second half of the year as bookings increased dramatically year over year. He said bookings are for the second half of 2021 already 32% before the second half of 2019 the same day this year. And that even before the group’s business picked up.
The casino business could be great Growth business In the second half of the year, consumers will be cashless and the demand for entertainment ready to burst. This is what investors are betting on today. Time will tell whether the surge in demand warrants the current valuation of the stock, but for today investors aren’t worried about overpaying for this casino stock.
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