Here's How Much Investing $1,000 In MGM Resorts Stock Back In 2010 Would Be Worth Today

Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500's SPY total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.

MGM’s Difficult Decade: One underperformer of the last decade was casino operator MGM Resorts International MGM.

The first big headlines of the 2010s for MGM was China’s 2014 crackdown on gambling corruption in Macau, China. MGM Resorts has a 56% ownership stake in MGM China and its subsidiaries MGM Cotai and MGM Macau.

In addition, MGM reduced its debt by more than $4 billion in 2016 when it spun off 10 of its U.S. casino properties into a new real estate investment trust called MGM Growth Properties LLC MGP.

MGM shares started the 2010s trading at $9.73 and spent the first three-plus years of the decade trading mostly in a wide range between around $9 and $16. MGM shares then went on a tear starting in 2013, peaking at $28.75 in early 2014 before the Macau crackdown derailed the rally.

From there, MGM spent the two years drifting steadily lower, eventually bottoming at $16.18 in early 2016. The stock finally broke out to the upside in late 2016. MGM ultimately peaked at $38.41 in early 2018, its high point of the decade.

2020 And Beyond: MGM shares were hammered in early 2020 when casinos were shut down due to COVID-19, and the stock dropped to as low as $5.90, its low point of the past decade. While the stock has since rebounded to around $19, it has still delivered underwhelming overall performance over the past 10 years.

In fact, $1,000 worth of MGM stock in 2010 would be worth about $1,700 today, assuming reinvested dividends.

Looking ahead, analysts expect MGM’s struggles to continue in the coming months. The average price target among the 19 analysts covering the stock is $18, suggesting 5.7% downside from current levels.

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