MGM Resorts as a Robust Share Cannibal Pick
"MGM Resorts International, trading at a market cap of roughly $9.44 billion and a price-to-free cash flow of 7.3x, has reduced its shares outstanding by about 52.5% over the past years. Despite headwinds on casino spending, the strong brand and solid buyback yield make it compelling."
MGM is presented as a strong candidate with impressive historical share reduction (over 50% cumulative reduction) and a cheap valuation driven by its buyback yield. The brand strength and potential catalysts in its core markets support a bullish view.
MGM Resorts International Shares Reduction Opportunity
"MGM Resorts International, trading at a market cap of $9.4 billion with a price to free cash flow of 7.3, has reduced its shares outstanding at an 8.4% annual rate for a cumulative reduction of 52.5%. The stock is still cheap today despite concerns around Las Vegas spending."
MGM Resorts International (MGM) is discussed as a strong share cannibal candidate with aggressive share buybacks over the past decade. Its low valuation metrics and significant share reduction strategy suggest a potentially undervalued opportunity despite market worries related to the casino industry.
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MGM Entertainment: A Resilient Physical Moat in the Age of Disintermediation
"By the way, this is why one of the things that interests me, we bought 24% of MGM. And why does that appeal to me? Because you can’t disintermediate it. Because you give me any AI equation, and I will tell you, irrelevant to this. No one’s going to get between going to an MGM resort, particularly Las Vegas, in which we have a huge share of Las Vegas. We have 11 properties in Las Vegas. No tech is getting between that and a human. And it's like the Flintstones. I'm going back to the dark ages. But that, to me, because everything else in the world that I see is able to be disintermediated by this, that, and the other thing. That isn't."
Barry Diller highlights his company6#39;s 24% stake in MGM as a strategic bet. He explains that unlike many tech-driven sectors where digital platforms can disintermediate traditional services, MGM benefits from its physical presence and unique entertainment experiences, particularly in Las Vegas. This commentary underscores MGM6#39;s durable moat in a world increasingly susceptible to digital disruption.