Will Las Vegas Pricing Shifts and Share Buybacks Reshape MGM Resorts International's (MGM) Investment Story?

• In the past week, MGM Resorts International reported third-quarter 2025 financials, revealing revenues of US$4.25 billion and a shift from net income to a net loss, while CEO Bill Hornbuckle publicly addressed pricing missteps at Las Vegas properties and discussed efforts to restore customer value.
• Alongside its earnings release, MGM finalized a new credit agreement, concluded one major share buyback program totaling over US$1.87 billion, and initiated pricing adjustments at key casino hotels to address falling guest satisfaction and visitation.
• We'll examine how MGM's focus on recalibrating Las Vegas pricing to attract and retain guests shapes its investment narrative going forward.

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MGM Resorts International Investment Narrative Recap

To stand behind MGM Resorts International as a shareholder, belief in the recovery of Las Vegas visitation and success in enhancing customer value at its flagship properties is essential. The most recent earnings decline and management’s focus on recalibrating hotel pricing directly address the near-term need to stabilize guest traffic, which remains the key catalyst, while persistent softness in value-oriented bookings is still the main risk; these updates have a moderate but not transformative impact on either in the immediate term.

Of the recent company developments, MGM's completion of a US$1.87 billion share buyback stands out. While this move returns capital to shareholders, its relevance in the context of soft earnings growth and ongoing adjustment of property pricing connects directly to short-term investor focus on margin stabilization and free cash flow strength.

But despite management’s reassurances, investors should be mindful that if declines in Las Vegas Strip visitation persist...

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 reflects a 2.3% annual revenue growth rate and a $369.7 million increase in earnings from the current $536.4 million.

Uncover how MGM Resorts International's forecasts yield a $44.21 fair value, a 35% upside to its current price.

Exploring Other Perspectives

Seven perspectives from the Simply Wall St Community put fair value estimates for MGM between US$26.92 and US$86.31 per share. Opinions vary widely among individuals, especially considering that further pressure on Las Vegas demand could affect both near-term cash flows and longer term upside; make sure you weigh these differing viewpoints for a broader understanding.

Explore 7 other fair value estimates on MGM Resorts International - why the stock might be worth 18% 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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