New York, March 21, 2026, 11:10 EDT
MGM Resorts International dropped 4.8% Friday to $35.37, leading losses among its peers. Shares of Las Vegas Sands, Caesars Entertainment, and Wynn Resorts all fell, but not as sharply, as investors reacted to fresh inflation concerns, ongoing Middle East tensions, and surging oil prices. The S&P 500 slid 1.51% to 6,506.48—its lowest closing level since September. Over 9 million MGM shares traded. The Nasdaq shed 2.01%, while the Dow was down 0.96%. “The market is finally settling into the idea that this may go on longer,” said Jake Dollarhide, chief executive of Longbow Asset Management, in a statement to Reuters. Reuters
This shift is significant because investors still evaluate MGM primarily on its Las Vegas business. Last month, Reuters noted that Las Vegas recorded its steepest annual drop in visitor numbers outside the pandemic in 2025. MGM’s own numbers show fourth-quarter lodging revenue slid almost 9%, hurt by lower Strip occupancy and weaker room rates. The company has pointed out that the pain was felt most at value-focused spots like Luxor and Excalibur.
Climbing Treasury yields are adding pressure. Keith Lerner, chief investment officer at Truist Advisory Services, points out that as yields move up, bonds start to look more appealing compared to stocks—a negative for businesses that rely on discretionary dollars spent in hotels, restaurants, and casinos.
MGM hasn’t turned in weak numbers across the board. Back in February, the company posted $4.6 billion in fourth-quarter revenue, $294 million in net income, and consolidated adjusted EBITDA of $635 million. Chief executive Bill Hornbuckle said growth came “despite headwinds in Las Vegas,” highlighting contributions from conventions, regional properties, MGM China, and BetMGM. MGM Resorts Investor Relations
After the March 12 JPMorgan investor forum, management struck an upbeat tone once more. Hornbuckle, posting on LinkedIn, pointed to “steady growth” in Las Vegas, citing robust convention demand and a packed event schedule—signals that MGM remains confident about higher-end and group travel outperforming the leisure segment. LinkedIn
There are some offsets here. Back in February, BetMGM—the online sports betting joint venture between MGM and Entain—projected 2026 net revenue at $3.1 billion to $3.2 billion, with adjusted core profit (its preferred operating earnings metric) running $300 million to $350 million. As for MGM, it wrapped up 2025 still holding $1.6 billion under its share repurchase authorization, allowing it to continue buying back its own shares.
The risk is still there. Michael Stathokostopoulos, senior market analyst at CoStar, told Reuters Las Vegas is “predominantly leisure-driven” when it comes to hotels, and rising inflation plus economic uncertainty are making travelers cut out trips, stay for less time, or opt for cheaper options. Reuters
Friday’s trading showed investors focused more on MGM’s immediate Las Vegas business than its longer-term digital ambitions or hopes for a convention rebound. Persistent high oil prices, rising yields, and any renewed weakness in leisure demand could keep the shares under pressure—even with share repurchases and BetMGM helping out.
