Does MGM Resorts (MGM) Prioritize Digital Growth or Capital Returns With BetMGM Milestone and Buyback Boost?

• MGM Resorts International recently confirmed that its management spoke at the BofA Securities 2025 Gaming and Lodging Conference on September 4, 2025, with the presentation webcast live on its Investor Relations website.
• Recent developments include BetMGM achieving profitability and the company authorizing an additional US$2 billion in share repurchases, underlining strong operational momentum and focus on digital and capital return initiatives.
• We'll examine how BetMGM's move to profitability and buyback expansion may reshape MGM Resorts International's investment narrative going forward.

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MGM Resorts International Investment Narrative Recap

For shareholders in MGM Resorts International, the key belief centers on the company’s ability to leverage its established brick-and-mortar presence while building digital scale, especially through BetMGM and global integrated resort projects. The recent news of BetMGM’s first profitable quarter and the expanded buyback plan signals ongoing digital progress and capital discipline. However, these announcements are not likely to materially change the most important short-term catalyst: the continued ramp-up of digital gaming revenue, nor do they resolve the biggest risk, the execution and timing of large international projects.

Among the recent developments, BetMGM turning profitable stands out as particularly relevant to the company’s growth story. Achieving positive EBITDA from its online gaming platform highlights tangible progress on one of the main earnings drivers and aligns closely with analyst expectations for increased digital contribution. Investors focusing on catalysts will likely view this milestone as a concrete step supporting future revenue and margin growth.

On the other hand, it’s important to remember that investors still need to be aware of risks tied to major international expansions, particularly if timelines shift or projects overrun...

Read the full narrative on MGM Resorts International (it's free!)

MGM Resorts International is projected to generate $18.4 billion in revenue and $906.1 million in earnings by 2028. This outlook is based on a forecasted annual revenue growth rate of 2.2% and a $369.7 million increase in earnings from the current level of $536.4 million.

Uncover how MGM Resorts International's forecasts yield a $47.64 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Eight Simply Wall St Community fair value estimates for MGM Resorts International range widely from US$3 to US$86.31 per share. While investors debate the company’s true worth, many remain focused on the execution risk surrounding expansive projects such as MGM Osaka and Dubai.

Explore 8 other fair value estimates on MGM Resorts International - why the stock might be worth less than half the current price!

Build Your Own MGM Resorts International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your MGM Resorts International research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free MGM Resorts International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate MGM Resorts International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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