Viva Las Vegas
MGM Resorts reported earnings today, February 9th, and posted a 23 cent earnings per share for Q4 of 2021. Compared to the loss of 90 cents a share in Q4 of 2020, the stock is seeing a major shift in demand. With the great reopening upon us as Omicron cases begin to dwindle, MGM is a favorite of all the casino stocks.
Throughout the pandemic, both stock trading and sports betting have found immense popularity as individuals were stuck inside. PENN gaming, the DraftKings, and BetMGM were among the many names gaining traction. “MGM Resorts highlighted BetMGM’s strong market share of 20-25% in the U.S. sports betting and gaming market” (Forbes) MGM is currently in the process of selling the Mirage due to “analysts that it doesn’t want to invest more money into the 32-year-old property best known for its exploding volcano.” (CNN) Hard Rock is said to be purchasing in the casino by mid-2022 for more than 1 billion dollars. This reduction in liabilities is a positive for investors.
From a technical analysis standpoint, the stock is near its November highs with the Fibonacci level offering a potential upside to $79. MGM continues to be one of the more bullish casino/gambling stocks in the market and will likely continue to outperform its peers.