Las Vegas Sands finds itself in quite a peculiar bind. Founded by the late, staunchly Republican Sheldon Adelson, the company hasn’t wavered from its pro-GOP stance under Miriam Adelson’s stewardship.
LVS’ Stock Experiences the Jitters as Trump’s Chances Grow Steadily
As polls tip increasingly in the favor of Donald Trump, the GOP’s official nominee poised against incumbent Joe Biden, the stock of Las Vegas Sands has taken quite the nosedive. Trading once at a respectable $53.96 on April 3, it now languishes at $42.34 as of July 17. The market’s reaction? A skittish shuffle, partly driven by rising chances of Trump’s second term.
During Trump’s previous tenure in the Oval Office, our favorite gaming equities, particularly those with a Chinese footprint, lost a quarter of their value. Trump’s fierce, almost swaggering attitude towards China, characterized by hefty tariffs and restrictive measures, has put all these stocks, including LVS, under significant pressure.
Despite Biden’s continuation or even intensification of these policies, the market jitters surrounding potential geopolitical tensions seem to escalate with Trump back in the limelight.
Fear Not, Mr. Musk and Mrs. Adelson Come to the Rescue
The increasingly rocky relationship between the U.S. and China puts Las Vegas Sands on a tumultuous path, balancing the tightrope of diplomatic sensitivity. The company’s significant exposure in Macau makes it a target for potential Beijing backlash.
However, hold your bets, skeptics see a silver lining. Trump’s reentry into the political arena might come wrapped with a mix of hard-nosed pundits and technocrats. But it also drags along key players like Elon Musk, who sports interests in the Chinese market with his ventures—Tesla, SpaceX, and since a year ago, X, formerly known as Twitter.
Miriam Adelson has promised a cool $100 million to Trump’s campaign, indicating she might push for a sotto voce rapprochement between Washington and Beijing.
Elon Musk enjoyed a rare regulatory free pass in China, allowing Tesla to operate unscathed, even as Beijing mused restricting Tesla’s presence around critical infrastructure. Such a pivot suggests China is bracing for Trump’s second act, cautiously avoiding burning bridges.
Stock Volatility: Who Blinks First?
As the specter of Trump’s return looms overhead, gaming stocks might ride through a roller-coaster of investor anxieties. Yet, these turbulent waves might settle, displaying resilience as the dust settles.
Curiously, the thread tying Trump’s reelection odds with an uncertain trajectory for his backers underscores a fascinating irony. While political betting exchanges anticipate his victory, it portends at least a temporal slump for those standing behind him.
