Published on: January 29, 2026, 11:04 AM.
Updated on: January 29, 2026, 11:27 AM.
- Casino stocks see a downturn on Thursday
- Sands China’s fourth-quarter performance underwhelmed
- Singapore continues to drive performance
Las Vegas Sands (NYSE: LVS) shares are plummeting this Thursday following a disappointing fourth-quarter report focused on Macau.
During midday trading sessions, the stock has fallen by 14%, surpassing the average daily trading volume after the company released lackluster figures for the last quarter of 2025. The operator’s hold-adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins in Macau dropped by 300 basis points year-over-year, indicating increased competition in the Chinese gaming market.
“Given the lack of strong signals that the mass market business will improve, it’s likely investors will reassess their valuation strategies for the Macau sector, as margin expectations adjust to a more subdued low-30s range,” commented Stifel analyst Steven Wieczynski in a note to clients.
Wieczynski maintains a “buy” rating for Sands, setting a price target of $72, although he observes that a quarterly EBITDA run rate of $700 million for Sands China may not be achievable in the short term. This could test investor patience, keeping Macau casino stocks undervalued.
Limited Support from Singapore for Sands Stock
The unsatisfactory Macau data also overshadows an exceptional quarterly performance at Marina Bay Sands (MBS) in Singapore.
Despite the Sands integrated resort in Singapore consistently being the most profitable casino globally and achieving record results, Wieczynski noted that investor attention remains fixated on the uncertain Macau market, which is frustrating given MBS’s accomplishments.
“Every quarter appears to bring new record results for MBS (acknowledging a slight positive hold this quarter), with a current EBITDA run rate of $2.5 billion looking exceptionally dated, making a $3 billion target seem feasible,” the analyst added. “MBS keeps delivering robust outcomes, leading even LVS leadership to shy away from discussing the EBITDA potential of this asset.”
Wieczynski further suggests it may be time for market players to reassess valuation metrics for the Singapore casino, possibly elevating evaluations from mid-teens to the high-teens range.
Sands Stock: A Story of Capital Returns
Amid concerns about the disappointing Macau figures, it’s essential to recognize that Sands stock is increasingly becoming a story of shareholder returns. The gaming company has repurchased $500 million worth of its shares in the fourth quarter, and a previously announced dividend increase will take effect next month.
Sands possesses the financial flexibility to continue rewarding shareholders while also investing in its five Macau properties and MBS.
“Moreover, the company’s robust liquidity (~$8 billion available) and a reasonably leveraged balance sheet, coupled with potential asset sales, provide sufficient resources to meet its substantial capital deployment goals,” concludes Wieczynski.