MGM Resorts International (MGM) - ★★★
Ranked #36 in our Q3 SMID Cap Equity Rankings
MGM Resorts International (NYSE: MGM) saw its stock plummet 12% today, closing at around $37 per share, following the company's cautionary remarks about room bookings for the upcoming Formula 1 race in Las Vegas.
During an analyst call, CEO William Joseph Hornbuckle revealed that room rates for the highly anticipated November event are "showing some softness." This disclosure has raised concerns among investors about the potential impact on the company's fourth-quarter performance.
The Las Vegas-based hotel and casino operator emphasized that its Q4 room revenues will heavily depend on the Formula 1 race's success. Hornbuckle expressed hope that bookings will improve, stating, "We are hoping and believing that this race will continue to pace up." However, he acknowledged that current trends suggest it could be a "potential headwind" for the fourth quarter.
This latest setback adds to MGM Resorts' challenging year, with the stock now down 16% year-to-date and 24% over the past 12 months.
The company's performance has been under scrutiny as the hospitality industry continues to navigate post-pandemic recovery and shifting consumer trends.
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