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Here's How Much You'd Have If You Invested $1000 in MGM Resorts a Decade Ago
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in MGM Resorts (MGM - Free Report) ten years ago? It may not have been easy to hold on to MGM for all that time, but if you did, how much would your investment be worth today?
MGM Resorts' Business In-Depth
With that in mind, let's take a look at MGM Resorts' main business drivers.
MGM Resorts International is a holding company and primarily owns and operates casino resorts through wholly owned subsidiaries. The company’s resort portfolio incorporates 30 unique hotel offerings, including some of the most familiar resort brands in the industry such as Bellagio, MGM Grand, Mandalay Bay and The Mirage.
The company reports under three operating segments: Las Vegas Strip (49% of total revenues in 2021), Regional Operations (35%), MGM China (12.5%) and Management and other operations (3.5%). MGM China’s operations consist of the MGM Macau resort and casino (MGM Macau) and the company is currently developing an integrated casino, hotel, and entertainment resort on the Cotai Strip in the region. Meanwhile, in Oct 2015, MGM Resorts created a controlled real estate investment trust (REIT) named MGM Growth Properties LLC (MGP), which began trading in April 2016.
MGM Resorts International holds 73% interest in MGM Growth Properties LLC (MGP), a premier real estate investment trust engaged in the acquisition, ownership and leasing of large-scale resorts. It also owns 56% stake in MGM China Holdings Limited, which owns MGM MACAU and 50% of CityCenter in Las Vegas.
MGM Resorts recently acquired the operations of Empire City Casino in New York and Hard Rock Rocksino in Ohio, which was rebranded as MGM Northfield Park. In 2018, MGM Resorts opened MGM Springfield in Massachusetts, MGM COTAI in Macau, and the first Bellagio-branded hotel in Shanghai.
The company’s superior business model, extensive non-gaming revenue opportunities, high-quality assets and attractive property locations are the primary growth drivers. In the past few years, it has taken various initiatives to align every recognized brand into one global entertainment brand. This resulted in a disciplined business model, with a unified view of strategy.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For MGM Resorts, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in October 2012 would be worth $2,934.90, or a gain of 193.49%, as of October 21, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 155.78% and the price of gold increased -9.30% over the same time frame in comparison.
Going forward, analysts are expecting more upside for MGM.
Shares of MGM Resorts have underperformed the industry in the past six months. The dismal performance was mainly due to the coronavirus crisis. During second-quarter 2022, the company witnessed a dismal performance in the Macau region owing to subdued visitation. Notwithstanding the easing of certain COVID-19 protective measures by authorities worldwide, certain travel restrictions, quarantine measures, testing requirements and capacity limitations remain in effect at its Macau Operations. Although casinos in Macau are now open, visitation is still below the pre-pandemic level. Given the uncertainties revolving around the crisis, the company expects the pandemic to keep affecting operations for some time. Earnings estimates for 2022 have declined in the past 60 days, depicting analysts concern regarding the stock growth potential.
Over the past four weeks, shares have rallied 6.04%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in MGM Resorts a Decade Ago
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in MGM Resorts (MGM - Free Report) ten years ago? It may not have been easy to hold on to MGM for all that time, but if you did, how much would your investment be worth today?
MGM Resorts' Business In-Depth
With that in mind, let's take a look at MGM Resorts' main business drivers.
MGM Resorts International is a holding company and primarily owns and operates casino resorts through wholly owned subsidiaries. The company’s resort portfolio incorporates 30 unique hotel offerings, including some of the most familiar resort brands in the industry such as Bellagio, MGM Grand, Mandalay Bay and The Mirage.
The company reports under three operating segments: Las Vegas Strip (49% of total revenues in 2021), Regional Operations (35%), MGM China (12.5%) and Management and other operations (3.5%). MGM China’s operations consist of the MGM Macau resort and casino (MGM Macau) and the company is currently developing an integrated casino, hotel, and entertainment resort on the Cotai Strip in the region. Meanwhile, in Oct 2015, MGM Resorts created a controlled real estate investment trust (REIT) named MGM Growth Properties LLC (MGP), which began trading in April 2016.
MGM Resorts International holds 73% interest in MGM Growth Properties LLC (MGP), a premier real estate investment trust engaged in the acquisition, ownership and leasing of large-scale resorts. It also owns 56% stake in MGM China Holdings Limited, which owns MGM MACAU and 50% of CityCenter in Las Vegas.
MGM Resorts recently acquired the operations of Empire City Casino in New York and Hard Rock Rocksino in Ohio, which was rebranded as MGM Northfield Park. In 2018, MGM Resorts opened MGM Springfield in Massachusetts, MGM COTAI in Macau, and the first Bellagio-branded hotel in Shanghai.
The company’s superior business model, extensive non-gaming revenue opportunities, high-quality assets and attractive property locations are the primary growth drivers. In the past few years, it has taken various initiatives to align every recognized brand into one global entertainment brand. This resulted in a disciplined business model, with a unified view of strategy.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For MGM Resorts, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in October 2012 would be worth $2,934.90, or a gain of 193.49%, as of October 21, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 155.78% and the price of gold increased -9.30% over the same time frame in comparison.
Going forward, analysts are expecting more upside for MGM.
Shares of MGM Resorts have underperformed the industry in the past six months. The dismal performance was mainly due to the coronavirus crisis. During second-quarter 2022, the company witnessed a dismal performance in the Macau region owing to subdued visitation. Notwithstanding the easing of certain COVID-19 protective measures by authorities worldwide, certain travel restrictions, quarantine measures, testing requirements and capacity limitations remain in effect at its Macau Operations. Although casinos in Macau are now open, visitation is still below the pre-pandemic level. Given the uncertainties revolving around the crisis, the company expects the pandemic to keep affecting operations for some time. Earnings estimates for 2022 have declined in the past 60 days, depicting analysts concern regarding the stock growth potential.
Over the past four weeks, shares have rallied 6.04%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.