Seeking Alpha
31 Oct 2026, 17:06 UTC · 2h ago
MGM Resorts: Vegas Weakness Hurts Earnings, But Valuation Keeps Us Bullish
Impact · against what's priced in
MGM's results are marginally negative as weakness in Las Vegas room rates undermines the revenue growth the market already expects. While BetMGM growth is strong, it does not offset the removal of the immediate takeover catalyst, leaving the stock to rely on buybacks and organic recovery.
- MGM−0.30
Challenges what's priced in
- The price assumes
A 7.2% revenue CAGR over the next decade, which requires a sharp acceleration from the 1.7% just delivered.
A 1% decline in Q3 revenue and an 8% drop in Las Vegas room rates cut against the revenue acceleration needed to justify the current price.
What MGM's price assumes · Sep 2
