By Brett Bujdos
June 3rd, 2021
We’ve been waiting for this to happen for months. Restrictions are being lifted, restaurants and bars are easing their mask requirements, people are ready to take vacations long past overdue. One company that may see an explosion in revenues and their bottom line over the summer months is MGM Resorts International (NYSE: MGM). To give an overview of their operations, its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. Its casino operations include various slots, table games, and race and sports book wagering. This type of discretionary spending is exactly what so many people in the United States will be looking to do in the coming months. One of MGM’s signature locations is located in Las Vegas, Nevada.
In addition to the recent explosion and expected continued growth of the mobile gambling industry, MGM Resorts controls a significant portion of the gambling industry along the Las Vegas strip, around 40-45%. With the financial backing of Blackstone Group Inc., MGM casinos include Aria, Bellagio, Circus Center, City Center, MGM Grand, and New York City. According to Nevada governor Steve Sisolak, on June 1 casinos can begin operating at 100% capacity.
Since days opening on March 22, 2020, when the price of MGM was $12.50, the price has risen roughly 334% (as of May 24) equating to a share price of $41.74. MGM management has a very positive outlook on the next 7 months or so when they claimed BetMGM is on track to record net revenues of $1 billion by 2022. Additionally, analysts are forecasting a 12-month median price of 45.50, with a low of $29.60 and a high of $54.00.
Excitement is in the air of Las Vegas. Pay attention to the ticker symbol MGM as they seem well-positioned to “bring the down the house.”