Shares of Palantir (PLTR) lost ground last Friday on a conveniently “leaked” memo about a communications issue. A prototype had fundamental security issues that the army would categorize as high risk.
Investors cannot assert when the U.S. Army identified the risk. The NGC2 platform connects military personnel with real-time data. PLTR stock trades at a forward P/E of nearly 270 times, so it is vulnerable to any negative news.
In the casino sector, both Las Vegas Sands (LVS) and Wynn Resorts (WYNN) faced selling pressure last week. Rumors are accelerating that casino owners charge too much for accommodation and food. Additionally, non-domestic travelers are boycotting tourism to the U.S. Tariffs, inflation, a strong U.S. dollar, and a non-immigration visa fee also add to the costs.
The government did not establish a refund process that would return the fees collected.
In Macau, tropical storms would likely disrupt visitors to Melco Resorts (MLCO), MGM Resorts (MGM), and Wynn Resorts. The storm arrived on Sunday.
Investors are avoiding WYNN stock since shares traded recently at a 52-week high of $134.23. Its P/E of 25.9 times (forward) also suggests risks of a near-term correction.
Investors should be wary of holding casino stocks. They are priced at a premium yet risk a steep drop in visitors this year.
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