Neutral/Negative Catalysts
- Macau margin compression: The core driver of the sharp stock drop; concerns include elevated promotions and weaker profitability.
- China crackdown/high-roller pressure: Newsflow explicitly flags crackdown-related weakness in Macau as a catalyst for downside.
- Margin deterioration in reported financials: Gross margin fell materially YoY, reinforcing the market’s profitability concerns.
- Broader tape: S&P 500 down -1.46% in the session, which can cap near-term rebounds.