Why I Am Bullish On MGM Despite Macro Headwinds
Summary
- MGM operates some of the top resorts in the U.S., which have maintained occupancy rates above 90% over the past few years.
- Despite short-term macro headwinds, I think the long-term outlook remains positive for Las Vegas, iGaming, and sports betting.
- MGM is well-positioned to benefit from the overall growth, and many of the current risks can be mitigated by extending the investment time horizon.
- They also have a clear growth path through investments in Japan, Dubai, and Brazil. There is a chance they will operate a casino in New York as well.
- I think the current macro situation presents an opportunity to accumulate MGM shares at a bargain price.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of MGM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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