Disney was more resilient than Wynn: Stock Price Comparison

gambling onlineAn interesting stock comparison between Disney and the well-known Wynn Resorts, which owns a series of land-based casinos in Vegas and Macau, has appeared on the investment advice site, The Motley Fool. Due to the coronavirus, both mega-companies have had a lot of trouble and suffered significant losses. However, Disney shares fell in value by only 3 percent over the year, while Wynn shares fell by as much as 40 percent.  

Disney had to close its theme parks and postpone movie launches during the quarantine measures. Plus, the company is actively investing in its streaming platforms, which have already amassed 100 million paid subscribers, but are not yet generating revenue and only require a huge investment. Operating profits are down 34%, the company has had to borrow $11 billion and lay off employees. 

A similar situation was observed throughout the market of land-based casinos. In the midst of the crisis, Wynn Resorts executives even gave up all or part of their salaries to provide all employees with a paycheck for a while. But Disney proved more resilient to crisis situations through diversification. There were divisions within the company that continued to operate and offset some of the losses. While Wynn Resorts is totally dependent on the gambling industry, and when it was completely shut off from operations, hard times came. For next year, analysts expect Wynn Resorts revenues to more than double and Disney revenues to only 10%. Despite the more positive projections for next year, Wynn Resorts is losing out on Disney’s appeal today. We also advise to read information about free quick hit slots