The coronavirus pandemic struck the world just like a curse and this curse is not yet ready to leave the planet. The pandemic not only took away several lives but also disrupted and brought down various businesses including MGM resorts International. Many sectors are still trying to recover and re-establish after their businesses got closed for a certain time when there was the imposition of the lockdowns and curfews. While there were sectors that made huge benefits and became stronger during the pandemic but quite a lot of sectors were affected and incurred losses due to the pandemic.
Travel and Tourism Sector
Let us for example consider the travel and tourism sector. The planes, cruises, resorts, hotels, etc. all got severely affected because of the pandemic. The companies under this sector had to bear huge losses because there were no tourists or travelers during a long season. The holiday season, which invites lots and lots of tourists, did not bear any fruit this time and the situation changed completely.
MGM Resorts International Stock (NYSE: MGM)
This company has a chain of hotels, casinos, restaurants, live entertainment, and conference spaces. The pandemic led to the shutting down of the casinos completely for a while and all the money which comes from the betting business vanished.
The vaccine has brought some good news for the company because now there are chances that if the vaccine gets complete success, then the pandemic scenario will come to an end and the year 2021 can be a good year for tourism and travel. This will help the company recover its losses and resurrect itself. Also, the company is focusing on what can be done otherwise and that is online sports betting. The company is trying to focus on BetMGM, the app for this purpose.
Statistics of MGM Stock (NYSE: MGM)
- 52 Week Range: $5.90 – $33.78
- Average Volume: 9,868,859
- Market Capital: $15.554B
- Forward Dividend and Yield: 01 (0.03%)
MGM Stock: A Buy Now or Not?
The MGM Stock is a risky investment to roll in right now. The company might become strong yet again but the year 2021 will mainly serve as a year of recovery for the company rather than profit, provided that the vaccines are fully successful. Therefore, the investors can wait and observe the company well this year or at least for the first half of this year. This period will show that in which direction the company takes a turn and how much time is required by the firm so that it starts gaining profits again. If the company will gain, the shareholders will benefit from the same.
Hence, this is not the right time for putting money in this company because it is not completely certain whether the money will yield any profit or bring in a loss. Rest, it is up to the discretion of the investors to think about their investment in MGM stock at this phase.