Wynn Resorts stock plummeted 10% Friday as allegations surfaced of Wynn CEO Steve Wynn being accused of sexual misconduct in the workplace. A report from the Wall Street Journal claimed dozens of women have stepped forward with their stories which span decades. Wynn has denied the allegations calling them "preposterous", and simply attributes them to a smear campaign from his ex-wife Elaine Wynn whom he's involved in a nasty lawsuit involving their divorce.
Wynn stock has been high flying over the last couple years appreciating from $50 to over $200 a few days ago, fueled by a resurgence in Macau gambling revenue and Las Vegas being fully recovered from the financial crisis, in fact Wynn soared 10% on a strong fourth quarter earnings report just days prior to the allegations. As a Wynn shareholder, I'm obviously concerned. Considering Steve Wynn's position of power and the type of industry he's in, there is a real possibility these allegations are true and could harm Wynn's premium branding, especially if it drags on in a series of negative press releases undoubtedly suppressing the stock price. Still, business is booming and Wynn stock will likely head higher but it wont happen as quickly as investors had thought just a couple days ago.
G'day
Good post Drew, I always have admired Steve Wynn and was unaware of any sexual harassment allegations against him. It's a shame if they are true, I believe people given power have a responsibility to act above board and to avoid using that power inappropriately. I will give him the benefit of doubt until I hear the details but if they are anything like Weinstein's behaviour not only Steve Wynn but the Wynn brand will be severely harmed.
Good post bud, i was just curious to know if you are invested in the stock markets as well .I am new to Stocks but i understand a good amount of TA so i was wondering if its almost the same
This looks like the tip of the iceberg for his misconduct. We'll see though. A good business is a good business, but if the brand is tarnished, like you said it could grow slower than it should.
Great post.
I don’t care. The wynn encore is the finest casino. And it’s Las Vegas....SHOCKER
Looks like Steve Wynn has stepped down as CEO and is pulling out of the company stating he's not able to fulfill his roll due to all the negative press. Possible he walks away with a 330 million dollar package for leaving haha. Sounds like he'll be just fine.