MGM Stock Price Rises After Coronavirus Outbreak
MGM stock has rebounded from its lows following the coronavirus outbreak, and the company will probably 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, and also Macau. The Bellagio, the Mirage, and other MGM resorts are among the most popular destinations.
BetMGM shares have fallen as Caesars Entertainment is spending heavily to improve their online sports betting business. The casino operator has also made a takeover offer of Entain for $11 billion, however the company rejected it as being 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 concentrating on online sports betting. In July, the company made a second investment in BetMGM. In August, MGM also made an $11 billion takeover bid for Entain, but the company rejected it as undervalued. On Sept. 21, DraftKings proposed a deal worth $20 billion. But on Oct. 26, it sweetened the offer to $22.4 billion. MGM’s stock price declined sharply.
MGM’s recent focus 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 company on Jan. 3. However, Entain rejected the offer, saying it was 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 using its joint venture partner, Entain. It made an $11 billion takeover bid for Entain in January, but it was rejected 엠카지노 추천인코드 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.
Though 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. As of September 30, MGM reported its financial results. Those results were better than expected, therefore the company is preparing for its next move. Its growth in sports betting is expected to continue for many years ahead. By using DraftKings, MGM plans to expand to other areas of the world.
MGM has announced plans to enter the online sports betting market with a $20 billion offer. Despite the potential benefits, the company continues to be facing competition in this sector. With its upcoming investment in BetMGM, it hopes to get a foothold in the Canadian market. A successful deal for MGM would allow it to leverage its global brand. This is actually the key to MGM’s future growth. If it creates it in the digital sports betting business, it has an immense impact on the company’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 business expects an EPS of $0.36 by 2023. Consequently, it is well-positioned for growth in this industry. Its current EPS of $2.34 will be enough to cover its investment costs. However, the company is facing challenges in catching around DraftKings, which has a $4.6 billion deal.
MGM can be expanding its business into online sports betting. The business invested in BetMGM in July with a second round of investments. On Jan. 3, MGM made a bid of $11 billion for Entain. This is rejected by the company since it did not consider it a fair offer. On Sept. 21, the business offered $22.4 billion for Entain. On Oct. 26, it made a better deal at $20.