MLCO · Melco Resorts & Entertainment Limited
AI read · Neutral
The AI's read
Melco missed Q2 estimates on both EPS and revenue as rolling-chip and mass-table gaming cooled, with earnings sliding to $0.06 from $0.23 year over year. Management also called out weaker non-gaming, and revenue fell roughly 6% to about $1.25 billion. Market reaction was muted and the stock sits near its 52-week low with RSI 25.69, so mechanical downside is partly reflected in the price. The miss is fresh and company-specific, not a broad-market problem. We lean bearish because gaming demand is the core revenue driver and the quarter shows clear deterioration. Conviction 84%: fresh negative data, limited immediate upside, buybacks/cash cushion the pain but don’t fix operations.