What Happened?
Shares of hotel and casino entertainment company Caesars Entertainment (NASDAQ: CZR) jumped 3.2% in the afternoon session after the company announced that sports fans in Missouri could now register and fund their accounts on its Caesars Sportsbook mobile app. The move allowed sports fans aged 21 and older to create their mobile sports wagering accounts ahead of the state's official sports betting launch on December 1. By opening registration early, Caesars positioned itself to capture a new market of customers as legal sports wagering becomes available in the Show Me State. This expansion represented a potential growth opportunity for the company's digital betting operations, allowing new users to download the app and prepare for the official launch.
After the initial pop the shares cooled down to $20.16, up 1.9% from previous close.
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What Is The Market Telling Us
Caesars Entertainment’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock dropped 2.9% on the news that an analyst at Jefferies downgraded the company's stock from "Buy" to "Hold."
The analyst also significantly lowered the price target on the shares to $22 from $39. The downgrade followed Caesars' recent third-quarter results that fell short of expectations, particularly in Las Vegas, where performance was down 20% compared to the previous year. The research note expressed low confidence in Caesars' ability to grow in its Las Vegas and regional markets. It also cited concerns about the company's growth path and noted that factors outside of the company's control could require more capital, which would limit potential gains for the stock.
Caesars Entertainment is down 38.2% since the beginning of the year, and at $20.16 per share, it is trading 49.3% below its 52-week high of $39.76 from February 2025. Investors who bought $1,000 worth of Caesars Entertainment’s shares 5 years ago would now be looking at an investment worth $316.27.
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