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Here's How Much a $1000 Investment in MGM Resorts Made 10 Years Ago Would Be Worth Today
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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 resorts 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
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in MGM Resorts a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2012 would be worth $2,907.39, or a gain of 190.74%, as of July 19, 2022, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 179.06% and gold's return of 3.77% over the same time frame.
Analysts are anticipating more upside for MGM.
Shares of MGM Resorts have outperformed the industry in the past year. The company is benefiting from pent-up consumer demand, high domestic casino spending and strong international leisure trends. Sports betting and iGaming continues to be a major growth driver for the company. The company is optimistic regarding BetMGM operations as it anticipates revenue contributions of more than $1.3 billion in 2022. Also, emphasis on monetizing its real estate assets and boosting its domestic cash position bode well. The company intends to invest more than $2 billion into its properties to boost customer experiences and services. This and focus on international expansion are likely to drive growth in the upcoming periods. Earnings estimates for 2022 have increased in the past 30 days.
The stock has jumped 5.58% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022; the consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in MGM Resorts Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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 resorts 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
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in MGM Resorts a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2012 would be worth $2,907.39, or a gain of 190.74%, as of July 19, 2022, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 179.06% and gold's return of 3.77% over the same time frame.
Analysts are anticipating more upside for MGM.
Shares of MGM Resorts have outperformed the industry in the past year. The company is benefiting from pent-up consumer demand, high domestic casino spending and strong international leisure trends. Sports betting and iGaming continues to be a major growth driver for the company. The company is optimistic regarding BetMGM operations as it anticipates revenue contributions of more than $1.3 billion in 2022. Also, emphasis on monetizing its real estate assets and boosting its domestic cash position bode well. The company intends to invest more than $2 billion into its properties to boost customer experiences and services. This and focus on international expansion are likely to drive growth in the upcoming periods. Earnings estimates for 2022 have increased in the past 30 days.
The stock has jumped 5.58% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022; the consensus estimate has moved up as well.