MGM Resorts International (MGM) stock is maintaining its upward momentum, soaring 5.59% in pre-market trading on Tuesday. This comes on the heels of Monday's impressive 5.74% gain, as the company continues to defy expectations amidst challenges in its sports betting operations during the NCAA March Madness tournament.
The unexpected rally persists despite BetMGM, the company's sportsbook, facing what has been described as a bettor-friendly college basketball season. Christian Cipollini, trading manager at BetMGM, noted that the March Madness tournament "has gone in the bettors' favor with favorites consistently winning." This trend, exemplified by an unprecedented all-No. 1 seed Final Four in the men's tournament, has generally been unfavorable for sportsbooks.
Investors appear to be looking beyond the potential short-term impacts of the sports betting outcomes, possibly focusing on other aspects of MGM's diverse business portfolio or broader market trends. The continued stock price surge suggests a strong investor confidence in the company's overall performance and future prospects, even as the sports betting landscape experiences shifts that could impact short-term profitability in that sector.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.