Casinos · Today in Vegas · November 6, 2026
Wall Street Sold Red Rock Resorts After a Third-Quarter Loss. Stifel Says the Sell-Off Makes No Sense and Holds a $70 Target.
Red Rock Resorts missed on profit, according to Casino.org. The Sunset Station operator posted a third-quarter loss of 17 cents a share on revenue of $488.7 million, while analysts had expected a profit of 44 cents a share on sales of $478 million. Shares were off 5.2% in late trading.
Spending may be what spooked investors. Truist Securities analyst Barry Jonas wrote that the budget for Durango North in southwest Las Vegas rose to $430 million from $385 million on expanded scope, with opening targeted for the third quarter of 2027. The expansion adds about 275,000 square feet and nearly 400 slots, and the company's 2026 capital spending is now up to $550 million to $575 million, Casino.org reported. Jonas wrote that management is also studying a roughly 400-room hotel expansion at Durango and expects to announce its next major project, possibly Cactus or Inspirada, relatively soon.
Stifel is not worried. "The recent sell-off in RRR shares really doesn't make much sense to us," Wieczynski wrote, adding that "operators that are aggressively investing in their underlying assets are being rewarded with market share gains." Jonas also noted that 60% of customers in Red Rock's tavern business were not previously members of its loyalty program.