Casinos & Hotels

Rising COVID-19 Cases and Reality Check Deliver Major Blow to Key Travel Stocks

Hertz Global Holdings Inc. (NYSE: HTZ) has been the most puzzling stock of them all. Despite filing for Chapter 11 bankruptcy protection, many investors, and even more day traders, have been hoping that there would be “more than zero” left for the common shareholders. Hertz was down almost 17% at $2.10 on Thursday morning. Its shares had reached a panic low of $0.40 after the bankruptcy filing, but investors and traders had chased it up to a close of $5.53 just on Monday. No one should care now that Hertz used to be a $20 stock.

Avis Budget Group Inc. (NASDAQ: CAR) was down 10% at $24.35 on Thursday morning. It had plummeted as low as $6.35 at the selling mania’s peak, and it was as high as $52.98 in the past year. Shares closed at $32.28 as recently as Monday.

Walt Disney Co. (NYSE: DIS) may be diversified as a media and entertainment company, but the theme parks are still the linchpin of its operations. Unfortunately, every aspect of its sports, theme parks, cruises and travel and movies are suffering, even if its shares have recovered. Disney’s stock price was down 3.7% at $117.75 on Thursday morning. It traded under $80 during the manic selling, but Disney shares had recovered to close up at $127.28 on Monday.

Six Flags Entertainment Corp. (NYSE: SIX) is of course a pure-play on destination theme parks. The stock was last seen down 8.5% at $22.50 on Thursday morning. That may be up more than 100% from its lows during the panic selling, but Six Flags closed as high as $27.06 just on Monday.

Marriott International Inc. (NYSE: MAR) is the top hotel chain with a $31 billion market cap, but its shares were down 7.5% at $94.90 on Thursday after the open. Marriott briefly traded under $50 during the panic selling, but its recovery rally went to a euphoric closing high of $113.14 on Monday.

Hyatt Hotels Corp. (NYSE: H) was down 6% at $56.21 on Thursday, versus a low of under $25 during the selling mania. Hyatt’s highest close during this recovery was $67.50.

Wynn Resorts Ltd. (NASDAQ: WYNN) had been recovering with the reopening trade, and the casinos are reopening. Wynn was down almost 6% at $93.15 on Thursday, up from a panic selling low of $35.84 and still down from a two-week high of $53.41. Wynn managed to close as high as $108.80 as recently as Monday.

Las Vegas Sands Corp. (NYSE: LVS) was down just 4% at $49.75 on Thursday morning. It still has a $38 billion market cap, but its 52-week range of $33.30 to $74.29 shows just how much the panic and euphoria has been. Las Vegas Sands closed at $55.64 on Monday.

The reality is that there are dozens of companies in the travel and destination space. To cover all of them would only make things look that much worse. It’s obvious their share prices fell too far during the panic, but the government support and the reopening of the economy also brought too much enthusiasm and “fear of missing out” for investors who couldn’t stop bidding up the shares.

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