{"id":228930,"date":"2022-08-29T02:00:48","date_gmt":"2022-08-29T07:00:48","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=228930"},"modified":"2022-08-29T14:01:18","modified_gmt":"2022-08-29T19:01:18","slug":"mgm-stock-is-more-tied-to-the-us-and-thats-a-good-thing","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/mgm-stock-is-more-tied-to-the-us-and-thats-a-good-thing\/","title":{"rendered":"MGM Stock Has Goods to Weather Macau Storm"},"content":{"rendered":"

By way of its 56% stake in MGM China, MGM Resorts International (NYSE:MGM) is exposed to slumping Macau. But the stock has the ingredients to endure ongoing turbulence in the largest Asia-Pacific casino hub.<\/p>\n

\"MGM
People watch the show at the Bellagio on the Las Vegas Strip. Some experts say MGM stock could generate upside. (Image: BuzzFeed News)<\/em><\/figcaption><\/figure>\n

Shares of the largest operator on the Las Vegas Strip shed a quarter of their value year-to-date — a performance that could be reflective of multiple factors. First, some market participants may be factoring that Macau’s gross gaming revenue (GGR) may not show any sign of improvement until 2023.<\/p>\n

Second, and arguably, more important, other investors could be assuming soaring interest rates and persistently higher inflation<\/a>, among other factors, will sap the US economy. That would be an obvious headwind for domestic casinos. Still, some experts believe MGM stock offers upside potential — regardless of Macau.<\/p>\n

Investors used to buy companies like MGM, which owns casinos in Macau, for their exposure to the fast-growing Asian gambling hub,\u201d<\/strong> reports Jacky Wong for the Wall Street Journal<\/em>. \u00a0\u201cBut they can now probably buy the company despite its Macau exposure, given its strong domestic performance.\u201d<\/strong><\/p><\/blockquote>\n

MGM China is resisting significant investments<\/a> in the special administrative region (SAR) for the time being. Fortunately, MGM has more outlets for offsetting China’s risk than the other US-based firms.<\/p>\n

Plenty of Non-Macau Reasons to Like MGM Stock<\/h2>\n

There was a time when MGM was a more direct bet on Macau. Previously, the aforementioned stake in MGM China represented as much as a third of the Bellagio operator’s market capitalization. But that\u2019s down to about 8% today, according to the Journal<\/em>.<\/p>\n

\n

Obviously, that\u2019s a symptom of the China unit\u2019s declining market value, but also a sign investors are prioritizing catalysts such as vibrancy on the Las Vegas and BetMGM. The operator\u2019s digital gaming arm, BetMGM, is the biggest internet casino name in the US, and one of the top online sportsbook operators. Importantly, that business is likely to turn profitable in 2023.<\/p>\n<\/div>\n

The iGaming and online sports wagering business is a potential second-half catalyst for MGM shares in its own right. That could prove to be the case if the operator keeps a lid on promotional spending through football season<\/a>, and capitalizes on the recent legalization of sports wagering in Massachusetts.<\/p>\n

Additionally, MGM reported second-quarter Strip occupancy rates north of 90% — a figure that could increase in 2023 as more convention and meeting business returns to Las Vegas.<\/strong><\/p>\n

Financial Factors Favoring MGM Stock<\/h2>\n

Indeed, a recession is likely to pressure casino equities and other consumer cyclical names. There\u2019s no two ways about that.<\/p>\n

\u201cThe record-breaking winning streak will probably end, and a recession will dent casinos\u2019 revenue\u2014but shares have also priced in much of these risks. Companies with exposure to the fast-growing online gambling market are even more attractive,\u201d according to the Journal<\/em>.<\/p>\n

In MGM\u2019s favor, particularly if economic contraction sets in, are its sturdy balance sheet<\/a> and shrinking shares outstanding count — two traits investors could prize if the US economy withers significantly.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By way of its 56% stake in MGM China, MGM Resorts International (NYSE:MGM) is exposed to slumping Macau. But the stock has the ingredients to endure ongoing turbulence in the largest Asia-Pacific casino hub. Shares of the largest operator on the Las Vegas Strip shed a quarter of their value year-to-date — a performance that […]<\/p>\n","protected":false},"author":46,"featured_media":228931,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[81897,81903,23,24],"acf":[],"yoast_head":"\nMGM Stock Is More Tied To The US And That's A Good Thing<\/title>\n<meta name=\"description\" content=\"MGM stock is a US story, not a Macau story, say experts.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/mgm-stock-is-more-tied-to-the-us-and-thats-a-good-thing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MGM Stock Is More Tied To The US And That's A Good Thing\" \/>\n<meta property=\"og:description\" content=\"MGM stock is a US story, not a Macau story, say experts.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/mgm-stock-is-more-tied-to-the-us-and-thats-a-good-thing\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-08-29T07:00:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-08-29T19:01:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/bell-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-stock-is-more-tied-to-the-us-and-thats-a-good-thing\/\",\"url\":\"https:\/\/www.casino.org\/news\/mgm-stock-is-more-tied-to-the-us-and-thats-a-good-thing\/\",\"name\":\"MGM Stock Is More Tied To The US And That's A Good Thing\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-stock-is-more-tied-to-the-us-and-thats-a-good-thing\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-stock-is-more-tied-to-the-us-and-thats-a-good-thing\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/bell-scaled.jpg\",\"datePublished\":\"2022-08-29T07:00:48+00:00\",\"dateModified\":\"2022-08-29T19:01:18+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"MGM stock is a US story, not a Macau story, say experts.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-stock-is-more-tied-to-the-us-and-thats-a-good-thing\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/mgm-stock-is-more-tied-to-the-us-and-thats-a-good-thing\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-stock-is-more-tied-to-the-us-and-thats-a-good-thing\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/bell-scaled.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/bell-scaled.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"Bellagio on the Las Vegas Strip. 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