What Happened?
Shares of hospitality and casino entertainment company MGM Resorts (NYSE: MGM) jumped 6.1% in the afternoon session after the recent Las Vegas F1 weekend provided a significant boost to the company, attracting a large number of visitors and setting new betting records.
The event brought in an estimated 150,000 extra visitors, providing a much-needed lift during what is usually a slow period for Las Vegas. MGM's Bellagio Fountain Club was fully booked, and the event set a new record for the most bet-on F1 race in BetMGM's history. Adding to the positive sentiment, the company revealed plans to hire around 12,000 employees for its upcoming MGM Osaka integrated resort. This large-scale recruitment effort reflected the significant size of the new casino project, which is set to be a landmark development for Japan's tourism sector.
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What Is The Market Telling Us
MGM Resorts’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 5.8% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
MGM Resorts is up 2% since the beginning of the year, but at $34.35 per share, it is still trading 14.9% below its 52-week high of $40.37 from February 2025. Investors who bought $1,000 worth of MGM Resorts’s shares 5 years ago would now be looking at an investment worth $1,210.
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