How MGM's Shift in Las Vegas Pricing and Q3 Losses (MGM) Has Changed Its Investment Story

MGM Resorts International reported third quarter earnings showing revenue growth to US$4.25 billion but moving from net income to a net loss of US$285.26 million, with loss per share of US$1.05 compared to earnings per share of US$0.61 a year earlier. Management acknowledged recent pricing and occupancy challenges at Las Vegas properties, with the CEO taking steps to adjust pricing and improve value perceptions as bookings started to recover following a decline in visitation. We'll examine how MGM's shift in pricing strategy and earnings announcement may affect its broader investment narrative and outlook.

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MGM Resorts International Investment Narrative Recap

To own MGM Resorts International, an investor ultimately needs to believe that disciplined reinvestment, successful pricing adjustments, and property modernization will reignite demand at its flagship Las Vegas resorts, supporting a recovery in physical and digital earnings. While the recent move to a net loss and management’s reset of pricing strategies underscore execution risk, the most important short term catalyst remains a sustained rebound in Las Vegas visitation; the sharp drop in quarterly profitability puts renewed focus on near-term margin recovery, while the biggest risk continues to be lingering softness at value-focused properties. Overall, the headline results and management’s response are material to both the trajectory and timing of any rebound, though not a fundamental shift in the structural narrative for MGM at this stage.

Among recent developments, MGM’s completion of a substantial share buyback program, repurchasing over 51 million shares for US$1,873.19 million, stands out. Although no additional purchases occurred in the third quarter, this buyback follows through on capital return initiatives and signals confidence in long-term value, contextualizing recent earnings volatility and ongoing business transformation.

Yet for investors, one factor to watch is whether ongoing renovation disruptions and occupancy pressures might prove more persistent than expected, especially if...

Read the full narrative on MGM Resorts International (it's free!)

MGM Resorts International's outlook points to $18.4 billion in revenue and $906.1 million in earnings by 2028. This scenario assumes a 2.3% annual revenue growth rate and a $369.7 million increase in earnings from the current $536.4 million.

Story Continues

Uncover how MGM Resorts International's forecasts yield a $44.21 fair value, a 35% upside to its current price.

Exploring Other PerspectivesMGM Community Fair Values as at Nov 2025

Simply Wall St Community members submitted 7 unique fair value estimates for MGM, spanning from US$26.92 to US$86.31 per share. With many still focusing on the challenging Vegas recovery and near-term margin volatility, you can see just how much views can vary, so explore a range of opinions before deciding where you stand.

Explore 7 other fair value estimates on MGM Resorts International - why the stock might be worth 18% less than the current price!

Build Your Own MGM Resorts International Narrative

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A great starting point for your MGM Resorts International research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision. Our free MGM Resorts International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate MGM Resorts International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include MGM.

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