Melco Resorts Entertainment Ltd Adr (MLCO)

Melco Resorts & Entertainment Ltd (MLCO) dropped by 15.38% from $8.91 to $7.54 in the trading on Tuesday November 7, 2023. The reasons why MLCO stock down today include:

• Third-quarter 2023 financial results: Revenue for the quarter increased from $241.8 million a year ago to $1.02 billion on the back of a recovery in Macao's gaming market overall. However, Melco reported a loss of $16.3 million, or $0.01 per share. Analysts were expecting $1.03 billion in revenue and break-even earnings.
• Debt problem: Melco Resorts has $7.77 billion of debt, and that's becoming a challenge given the company's current profitability. At the current adjusted EBITDA run rate, the multiple of debt to adjusted EBITDA is 6.9, which is very high for a casino company amid rising interest rates. This is also a headwind causing MLCO stock down today.