Will MGM Stock Go Up? I Think You Should Buy The Stock Now

Will MGM Stock Go Up?

If you ask me will MGM stock go up, I can only give you one answer: YES! Few days ago, the price started dropping…again. But, if you have strong nerves, I think you should buy their stocks. Owning MGM stock will probably not make you rich, but there are some reason why you should consider adding it to your portfolio.

Will MGM Stock Go Up?

Will MGM Stock Go Up?

There are five very important things you should consider before you buy MGM stocks:

  • MGM reported a 29% drop in revenue during the first quarter of 2020 and a 91% drop in Q2 due to the coronavirus pandemic.
  • Both Las Vegas and Macao casinos have been reopened but the visitors didn’t return.
  • The company generated $300+ millions in profit last year, but they had a loss of more than $1 billion in 2020.
  • The company fired over 18 thousand people.
  • It will probably take at least 5 years for casino businesses to recover.

Why You Should Buy MGM Resorts?

There are a few good reasons why I think that MGM stock price will go up in the following years:

  • MGM Resorts reduced its operating expenses by more than 80%.
  • Their finances look really good at the moment. They had around $4,8 billion in cash at the end of June.
  • They are expanding their online gambling and sports betting business.
  • They received an investment of $1 billion from IAC/Interactive. IAC actually helped them develop their BetMGM platform

MGM and all other casino companies have been damaged by the coronavirus pandemic, but we will get back to normal some day, and this means that we will start visiting casinos again.Several U.S. states have legalized sports betting, and three more plan to do it in the following months.

Gambling and betting will continue to be a growing market and I believe that casinos will make a recovery next year. So, there is not need to wait with MGM stocks.

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