Melco Crown Entertainment (NASDAQ: MPEL ) has been one of the hottest stocks in gaming over the past three years, but that run could come to an end as operational leverage slows and new resorts have to live up to expectations. First-quarter numbers at Melco Crown showed continued growth in Macau, but VIP didn't grow significantly and mass-market play was only up 25%.
That may look impressive, but it compares to 81% growth in the mass market for Las Vegas Sands' (NYSE: LVS ) Venetian Macau and 74% growth at Sands Cotai Central.
There are also questions facing expansions like Studio City, which still isn't guaranteed table games, a factor that could make the resort unprofitable. Fool contributor Travis Hoium sat down to go over the good and bad for Melco Crown in the video below.
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