What happened 

Shares of Wynn Resorts (WYNN -0.06%) dropped 25.7% in May, according to data provided by S&P Global Market Intelligence, as results for the first quarter failed to impress investors. It also didn't help that Macau's gaming regulator reported underwhelming results as well

So what 

Wynn's Q1 report showed revenue was down 3.7% to $1.65 billion, and property EBITDA, which is a proxy for cash flow, dropped 12.3% to $494.8 million. 

Macau's skyline at night from the water.

Image source: Getty Images.

In early May, Macau's gaming regulator also announced that April gaming revenue dropped 8.3% from a year before, which sparked concerns of a slowdown. May's results were better, rising 1.8% from last year, but gaming revenue is down 1.6% so far in 2019. 

It also didn't help that the market overall fell as investors worried about trade wars and the economy. Vacation and gaming spending are among the first expenses to go in a recession, so Wynn's stock is taking the brunt of the decline. 

Now what 

There wasn't any fundamental reason to bail on Wynn Resorts in May, and this may be a good buying opportunity for investors. The company got the go-ahead to open its Boston-area resort this summer, which will diversify the business and increase cash flow. And despite its struggles in 2019, Macau continues to be a cash cow for Wynn, with EBITDA of nearly $400 million in the first quarter alone. Wynn Resorts is still positioned well in the best gaming markets in the world, and that's worth buying into, even if there are ups and downs.