Jim Cramer Says He Is "Not a Buyer of Caesar's Entertainment"

Caesars Entertainment, Inc. (NASDAQ:CZR) is one of the stocks that Jim Cramer looked at. A caller asked about the company, and Cramer stated:

“No, I’m not a buyer of Caesar’s Entertainment… I don’t know why we’d want to be in this also-ran. If you want to be in casino, you want to be in WYNN, okay. WYNN is the way to go.”

Caesars (NASDAQ:CZR) operates gaming and hospitality properties featuring slot machines, table games, hotel accommodations, and entertainment venues. The company also provides sports betting, iGaming, and related services. JDP Capital Management stated the following regarding Caesars Entertainment, Inc. (NASDAQ:CZR) in its Q1 2025 investor letter:

“Caesars Entertainment, Inc. (NASDAQ:CZR) – In terms of upside it is not hard to see $80 or $90 per share for CZR in present value using a simple breakup value analysis (200% to 300%+ upside) from today’s $25 price. Although Vegas and regional brick and mortar casino revenue declined by 1% in 2024, we are invested in CZR for the unrecognized earnings power of the high margin, high return on capital online gaming business. As the largest and arguably most investor-friendly gaming and hotel business in the US, CZR is benefiting from state-by-state legalization of online gaming. In 2024 CZR’s online gaming business (Caesars Palace and Horseshoe Apps) grew 20% to 1.2 billion with EBITDA up 207% to $117 million over 2023. In 4Q 2024, iGaming revenue grew 65% on top of 54% growth in 2023. Helping to fuel 2025 online gaming growth, Caesars is launching a live, iCasino in-app product in Michigan and New Jersey following legalization in those states. CEO Tom Reeg is confident that the online gaming business is on track to achieve $500 million in EBITDA as planned. Once achieved, the online business would be worth well in excess of the entire company current market cap of $5 billion. Setting aside this potential, CZR should earn over $1 billion in after-tax free cash flow in 2025 implying a 20%+ equity yield on the stock today. Caesars recently expanded its board to include two Carl Ichan-appointed members. The stock was down over 25% in the first quarter.”

Caesars Entertainment (NASDAQ:CZR) operates gaming and hospitality properties featuring slot machines, table games, hotels, and entertainment venues. The company also provides retail and online sports betting, iGaming, and related services.

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Disclosure: None. This article is originally published at Insider Monkey.