Red Rock Resorts reported modest revenue growth but missed analyst predictions in Q3, despite delivering record net revenue and adjusted EBITDA for the ninth and fifth consecutive quarters. The company attributed its success to a thriving Las Vegas locals market and strong performance at Durango Casino Resort. Despite construction disruptions, customer traffic remained robust, with high spending on slot machines and positive contributions from non-gaming operations. Analysts questioned the impact of Strip trends on the locals market and construction disruptions, but Red Rock emphasized the differences between their core business and the Strip, highlighting their tavern business as a growth opportunity. With ongoing construction at Green Valley Ranch and Sunset Station, investors are watching how customers respond to Durango's next phase, the appeal of new taverns, and Red Rock's ability to manage expenses and drive cash flow. Despite a slight stock price drop after earnings, some investors see this as a potential buying opportunity, given Las Vegas' continued growth and Red Rock's focus on the locals market.

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