MGM Stock Price Rises After Coronavirus Outbreak
MGM stock has rebounded from its lows after the coronavirus outbreak, and the business is likely to continue posting positive earnings as vaccines are rolled out. The business also has seen a boost from the recent emergence of sports betting, that allows users to wager on horse racing games. This casino-resort operator has a large number of properties worldwide, including casinos, hotels, and conference spaces. MGM owns over 30 different properties in the United States, along with Macau. The Bellagio, the Mirage, and other MGM resorts are being among the most popular destinations.
BetMGM shares have fallen as Caesars Entertainment is spending heavily to boost their online sports betting business. The casino operator has also made a takeover offer of Entain for $11 billion, however the company rejected it to be undervalued. On Sept. 21, DraftKings announced a $20 billion takeover bid for Entain. The offer was sweetened to $22.4 billion on Oct. 26, and MGM’s share price has been steadily increasing ever since.
MGM includes a long history in the casino business, however now is focusing on online sports betting. In July, the business made another investment in BetMGM. In August, MGM also made an $11 billion takeover bid for Entain, however the company rejected it as undervalued. On Sept. 21, DraftKings proposed a deal worth $20 billion. But on Oct. 26, it sweetened the deal to $22.4 billion. MGM’s stock price declined sharply.
MGM’s recent concentrate on sports betting has been a boon to the business. Its second round of investments in BetMGM last July solidified its partnership with Entain, which made an $11 billion takeover bid of the business on Jan. 3. However, Entain rejected the offer, saying it had been too low. On Sept. 21, DraftKings followed suit with a $20 billion takeover proposal. On Oct. 26, it made a sweeter deal of $22.4 billion, but rejected the offer.
MGM has made the transition to online sports betting. In July, the company made another round of investments in BetMGM with its jv partner, Entain. It made an $11 billion takeover bid for Entain in January, but it was rejected as undervalued. On Sept. 21, it made another bid of $20 billion, which DraftKings rejected as too low. Afterwards, the two companies reached a deal on Oct. 26.
Although it is still early to determine the impact of sports betting on MGM’s stock price, it’s worth looking at its current and projected growth in these markets. By September 30, MGM reported its financial results. Those results were much better than expected, therefore the company is finding your way through its next move. Its growth in sports betting is expected to continue for many years ahead. With the help of DraftKings, MGM plans to expand to other parts of the world.
MGM has announced plans to enter the web sports betting market with a $20 billion offer. Regardless of the potential benefits, the company is still facing competition in this sector. With its upcoming investment in BetMGM, it hopes to gain a foothold in the Canadian market. An effective deal for MGM allows it to leverage its global brand. This is actually the key to MGM’s future growth. If it makes it in the digital sports betting business, it will have an immense impact on the business’s stock price.
The company’s growth is also a key driver of its future earnings. MGM RESORTS INTERNATIONAL’s earnings per share for the quarter ended September 30, 2021 was $1.34. Based on the company’s management, the company expects an EPS of $0.36 by 2023. Consequently, it really is well-positioned for growth in this industry. Its current EPS of $2.34 will undoubtedly be enough to cover its investment costs. However, the company is facing challenges in catching up to DraftKings, which has a $4.6 billion deal.
MGM is also expanding its business into online sports betting. The company invested in BetMGM in July with another round of investments. On Jan. 3, MGM made a bid of $11 billion for Entain. This is rejected by the company because it did not consider it a good offer. On Sept. 21, the company offered $22.4 billion for Entain. On Oct. 26, it made 넷마블 바카라 a better deal at $20.