Las Vegas Sands (NYSE:LVS) Punished by Over-Stimulated Investors

Shares of companies like Las Vegas Sands (NYSE:LVS), are continuing to get punished even after solid quarterly results and guidance, as investors seem to be overly stimulated by recent unsustainable results, and continue to measure the company by that performance, rather than what can be done in reality over the longer term.

Las Vegas Sands has dropped by over 7 percent in trading Friday on just that type of situation, as investors had such high expectations Las Vegas Sands were almost surely to fall short of them, as they indeed did.

Revenue in the fourth quarter increased by almost 57 percent, while adjusted earnings beat analysts' expectations. That has somehow translated into a disappointing quarter by some being ruled by emotions and hype.

Most of the disappointment came from what appears to be slowing growth in Macau, although that wasn't a surprise to those aware of the impact on the Chinese people when celebrating their New Year.

The Chinese are particularly crucial to the growth prospects for Macau, and have been doing their part in the recent past, but questions have been generated because of what looks like slowing growth.

We won't know if that's really the case or not until the next couple of quarterly reports, to see if there is a pattern developing or it was just a temporary lull.

Also of importance will upcoming reports from MGM Resorts (NYSE:MGM), Melco Crown (Nasdaq:MPEL) and Wynn Resorts (Nasdaq:WYNN), which will give an idea if Las Vegas Sands are losing customers to competitors, or if it's an industry-wide slowdown in some areas.

If they are shown to be doing well, Las Vegas Sands could take another hit, even though they continue to put out decent numbers.

Las Vegas Sands was trading at $46.48, falling $3.80, or 7.56 percent, as of 2:28 PM EST.