MGM Resorts International (MGM) is due to report its Q1 earnings tomorrow, and will do so on the tailwinds of BetMGM, its subsidiary, strong earnings posted earlier this week. MGM isn’t just a casino operator — it’s part of American pop culture. From the iconic Bellagio fountains (‘Ocean’s Eleven’, anyone?) to the bustling MGM Grand and Mandalay Bay, MGM’s properties define the Las Vegas experience. With stakes in entertainment, hospitality, and gaming, it’s a company built into the skyline and spirit of America’s favorite playgrounds.
However, MGM’s stock hasn’t been flashing the bright lights investors expect. Shares are down nearly 24% over the past six months and have slipped 5.9% year-to-date. MGM reports its first-quarter 2025 results tomorrow, and Wall Street is watching closely.
BetMGM Gives Positive Signals
Analysts forecast earnings per share of $0.47 and revenue around $4.28 billion. While that’s down from last year’s $0.74 per share, the real story may lie beneath the surface.
BetMGM — MGM’s online gaming and sports betting joint venture with Entain delivered a strong Q1 report this week. Net revenue surged 34% year-over-year to $657 million, with iGaming revenue up 27% and online sports betting up a remarkable 68%. Even more impressive, BetMGM swung to a positive EBITDA of $22 million, a major turnaround from past losses. This momentum could lift MGM’s consolidated results and help counter broader market worries.
Trimming Services: A Worrying Sign?
MGM is also trimming traditional services. The company is shutting down in-person concierge desks at most of its Las Vegas Strip resorts, citing a shift toward digital self-service. The change affects 34 positions, which MGM says is not part of a broader cost-cutting plan but a move to align with evolving guest preferences. Concierge support will be routed through Bellagio and ARIA.
Analysts Are Mostly Optimistic
Analysts are upbeat. The consensus rating on MGM is a Strong Buy, with an average price target around $47.50, suggesting nearly 50% upside from current levels. Despite some price target cuts (mostly to $41–$45), the bullish tone remains. Only Morgan Stanley (MS) and Bank of America Securities (BAC) have Hold ratings.
The BetMGM update shows investors that MGM’s digital strategy is finally paying off. Positive early results in online gaming — an increasingly critical part of the business — could help MGM beat expectations and regain momentum. MGM’s entrenched brand power, combined with a strong digital showing from BetMGM, sets an encouraging stage for tomorrow’s report.
Is MGM stock a Good Buy?
Analysts rate MGM stock a Strong Buy, with an average price target of $47.50, which implies a 47.47% upside potential.
