MGM Resorts (MGM) Is Up 6.9% After Record F1 Weekend Attendance and Sportsbook Activity - Has the Bull Case Changed?

• During the recent Las Vegas Formula 1 weekend, MGM Resorts International saw approximately 150,000 additional visitors and achieved over 98% occupancy at its Strip properties, with record-setting activity at the Bellagio and BetMGM sportsbook.
• This surge in attendance marked the most bet-on F1 event in BetMGM’s history, highlighting the power of major events to drive incremental demand and gaming revenue.
• We’ll now explore how this exceptional event-driven demand could influence MGM Resorts International’s investment narrative and future growth outlook.

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MGM Resorts International Investment Narrative Recap

To be an MGM Resorts International shareholder, you need to believe in the company’s ability to sustain demand for Las Vegas destination travel, capitalize on digital gaming, and manage significant global expansion. The recent surge in visitor numbers and all-time sportsbook records during the Las Vegas Formula 1 weekend showcase how large events can act as vital short-term catalysts for MGM. However, this event-driven boost does not materially alter the ongoing risk: persistent weakness in year-round Las Vegas Strip visitation and structural pressures on physical property revenues remain a concern.

Among the recent announcements, the October Q3 earnings report stands out for its relevance: while revenue continued to rise modestly, net losses returned compared to the prior period’s profit, reflecting the underlying margin pressures the company faces. This underscores how exceptional event weekends, while impressive, may not be enough on their own to offset broader operational and financial challenges that investors will want to monitor.

In contrast, investors should be aware of the persistent doubts about Las Vegas visitation trends and the potential for these pressures to...

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

MGM Resorts International's outlook anticipates $18.4 billion in revenue and $906.1 million in earnings by 2028. This is based on a projected 2.3% annual revenue growth rate and a $369.7 million increase in earnings from $536.4 million today.

Uncover how MGM Resorts International's forecasts yield a $44.15 fair value, a 27% upside to its current price.

Exploring Other Perspectives

Seven Simply Wall St Community fair value estimates for MGM Resorts International range widely, from US$26.92 to US$86.31 per share. While some see opportunity in MGM’s digital and sports betting focus, others highlight that uncertain Las Vegas demand poses risks to future returns, explore the full spectrum of views.

Explore 7 other fair value estimates on MGM Resorts International - why the stock might be worth 23% less than 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 2 key rewards and 4 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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