What Happened?

Shares of gaming, betting and entertainment company Bally's Corporation (NYSE: BALY) fell 6.3% in the afternoon session after its landlord for a planned Las Vegas Strip casino project expressed it was unlikely to finance the entire development. Gaming & Leisure Properties Inc., which owns the land, told analysts it would be open to investing in parts of the proposed casino but stopped short of committing to the broader construction financing. This news cast doubt on the future of a key project for the company.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Bally's? Access our full analysis report here.

What Is The Market Telling Us

Bally’s shares are extremely volatile and have had 66 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 5 days ago when the stock dropped 4.9% on the news that investors reacted to a competitor's weak earnings report and reports highlighting Bally's own highly leveraged business model. The negative sentiment was compounded by news from rival Caesars Entertainment, which missed Wall Street's revenue and earnings expectations, suggesting potential softness in the leisure market. Specific to Bally's, the company faced scrutiny for its debt-heavy operations, with total debt reported at $5.74 billion.

Bally's is down 8.1% since the beginning of the year, and at $17.88 per share, it is trading 19% below its 52-week high of $22.07 from November 2024.

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