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Forbes Money Investing Caesars And MGM: Cybersecurity Issues Derail Shares Of Casino Names John Navin Contributor Opinions expressed by Forbes Contributors are their own. Following Sep 23, 2023, 01:14pm EDT | Press play to listen to this article! Got it! Share to Facebook Share to Twitter Share to Linkedin Caesars, MGM getty It would be a nightmare for any large publicly traded American company but imagine the effects of a cyber attack on the security of major casino/resorts based in Las Vegas. The attackers are reported to have found, for example, credit card information and social security numbers of customers. You have to wonder how much other detailed information might have been discovered such as betting patterns and who might have owed what and how much to the casino company. Would you want the cyber hackers to possess even simple matters such as when you checked in, with whom and when you checked out? Wall Street is not waiting to find out more about it – shares in Caesars and MGM Resorts are being sold as investors assess the story and determine how much more comfortable it might feel to unload. Whatever is found out about the attackers and what they took away from their activities, stocks are already in “get out now” mode. Caesars Here’s the daily price chart for Caesars: Caesars Entertainment daily price chart, 9 23 23. stockcharts.com MORE FOR YOU The Russians Just Knocked Out A Fifth Of The Ukrainians’ Best Strv 122 Tanks Bitcoin s Fed Nightmare Is Suddenly Coming True To Blow Up Warships And Headquarters In Crimea, Ukraine First Had To Roll Back Russia’s Air-Defenses After peaking in late July at just above $60, the stock now trades at $46 for a sudden 23% drop in 2 months' time. The price now sits beneath its 200-day moving average (the red line) and well below its 50-day moving average (the blue line). Both appear to be turning over and now beginning downtrends. Caesars weekly price chart looks like this: Caesars Entertainment weekly price chart, 9 23 23. stockcharts.com Price peaked at $120 in September 2021 and since then it’s been a tough road for the Las Vegas-based casino/resort company. The recent sell-off takes it below a 50-week moving average that had been turning back upward. Note the Caesars has traded below its 200-week moving average since April/May 2022. MGM The MGM daily price chart is here: MGM Resorts International daily price chart, 9 23 23. stockcharts.com That’s a 27% drop from the late July high of $51 to the current price of $36.54. The stock trades well below both significant moving averages and the 50-day has turned downward. Note the pick-up in selling volume (the reddish bars below the prices) in early August and then again from mid-September to the present. This is the weekly MGM price chart: MGM Resorts International weekly price chart, 9 23 23. stockcharts.com The effect of the cybersecurity issue can be seen clearly as the stock had just slightly exceeded its October/November 2021 peak before the heavy selling began. The look here is not quite as bad as the Caesars chart but that sudden blast downward below the 50-week moving average is serious. Follow me on Twitter or LinkedIn . John Navin Editorial Standards Print Reprints & Permissions
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