Jim Cramer is planning to buy 75 shares of Wynn Resorts Ltd WYNN at about $88.18 per share for his charitable trust, he said Monday in a letter to members of CNBC's "Investing Club."
"We are adding to this position because we think the broad rally in Chinese tech stocks, like Alibaba Group Holding Ltd BABA, is positive to the sentiment around Wynn Resorts," Cramer said.
Chinese stocks have been steadily declining for months amid increased regulation by the Chinese government. Over the past week, China-based stocks have rallied on easing regulatory pressure.
Cramer pointed out that Macao gaming operators like Wynn Resorts traded down alongside the Chinese tech stocks, but have yet to recover, while the Chinese stocks have bounced off of their lows.
Cramer also noted that Wynn Resorts' properties in Las Vegas and Boston are "performing exceptionally well." He expects the U.S. properties will continue to do well as COVID-19 cases continue to decline and international travelers begin traveling again.
Cramer also likes the company's Wynn Interactive product and thinks "it has the potential to be a real player in the $45 billion North American sports betting and iGaming market."
WYNN Price Action: Wynn Resorts has traded as high as $143.88 and as low as $67.70 over a 52-week period.
The stock was up 3.85% at $89.35 at time of publication.
Photo: Wolfgang Staudt from Flickr.
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