Leisure Trouble at Home? Why This Investor Dumped $52 Million in MGM Stock

Core Insights - HG Vora Capital Management has completely exited its position in MGM Resorts International, liquidating 1.5 million shares valued at approximately $51.6 million during the third quarter [2][6][7] - MGM's stock price as of the latest market close was $32.47, reflecting a 13% decline over the past year, underperforming the S&P 500's nearly 15% return in the same timeframe [3][4] Company Overview - MGM Resorts International operates a diversified portfolio of casino, hotel, and entertainment resorts, primarily in the U.S. and Macau, focusing on integrated resort experiences [5] - The company reported a market capitalization of $8.9 billion, with a trailing twelve months (TTM) revenue of $17.3 billion and a net income of $69.7 million [4] Financial Performance - MGM's consolidated net revenue increased by only 2% year-over-year to $4.3 billion, with adjusted EBITDA declining from $574 million to $506 million [7] - The company experienced a net loss of $285 million, largely due to a $256 million goodwill impairment related to its Empire City decision [7] - Las Vegas Strip EBITDAR fell by 18%, and adjusted EPS decreased from $0.54 to $0.24 [9] Market Position and Strategy - MGM's strategy emphasizes capturing both traditional and digital gaming demand through its scale, brand recognition, and presence in key gaming markets [5] - Despite the challenges, MGM China reported a 17% revenue growth, and BetMGM raised its full-year guidance, indicating some positive momentum [9]