In a surprising turn of events, the once-thriving casino industry has hit a rough patch, with one stock in particular standing out as the worst casino stock to own this month. According to Yahoo Finance, this stock is facing a slew of challenges that have investors running for the hills.
The stock in question is none other than MGM Resorts International (MGM), a well-known player in the casino world. Despite its reputation as a major player in the industry, MGM has been struggling recently due to a variety of factors.
One of the main reasons for MGM’s poor performance is the ongoing impact of the COVID-19 pandemic. With restrictions on travel and entertainment still in place in many parts of the world, casino revenue has taken a major hit. MGM’s properties in Las Vegas, Macau, and other locations have seen a significant drop in visitors, leading to a sharp decline in profits.
In addition to the pandemic, MGM is also facing stiff competition from other casino operators. With new casinos opening up around the world, MGM is finding it harder to attract customers and stand out in an increasingly crowded market. This has put additional pressure on the company’s bottom line.
To make matters worse, MGM is also grappling with internal issues. The company recently announced a major restructuring plan that will result in thousands of layoffs and the closure of several properties. This move has sparked concerns among investors about MGM’s ability to turn things around and weather the storm.
As a result of these factors, analysts are advising investors to steer clear of MGM stock for the time being. The company’s uncertain future and shaky financials make it a risky bet in the current climate. While MGM may bounce back in the long run, it is unlikely to see much growth in the near future.
Overall, the outlook for MGM Resorts International is grim, with the stock expected to continue its downward trend in the coming months. Investors would be wise to heed the warnings and avoid this particular casino stock until it shows signs of improvement.
