We recently published a list of Jim Cramer Put These 10 Stocks Under the Spotlight. In this article, we are going to take a look at where MGM Resorts International (NYSE:MGM) stands against other stocks that Jim Cramer discusses.
On Friday, Jim Cramer, host of Mad Money, discussed how recently, the market’s movements are largely influenced by the White House, with the Federal Reserve playing a somewhat smaller role. He pointed out that this places investors in a tough spot, especially since the Fed can only adjust interest rates, but the White House can have a much more immediate impact through its posts and announcements. Cramer humorously noted that for one day, the market was free from presidential posts, and it seemed to thrive.
“I want to remind you that at any moment, the president can wreak havoc on anything, I have to say with a gratuitous post, reminding people that there’s more pain ahead.”
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Cramer emphasized that he has been critical of what he sees as unnecessary and provocative posts from the president. He noted that these remarks often add to the sense of unease among investors, especially when they hint at more economic pain ahead.
While many are aware of the ongoing trade war, Cramer emphasized that it does not help to repeatedly be reminded of the looming challenges. Right now, he said, people are feeling particularly anxious. He pointed to the alarming drop in the University of Michigan’s consumer sentiment survey and highlighted:
“People fear inflation and worry about their savings, which happens to be in many cases, the stock market.”
According to Cramer, many people do not fully understand the implications of tariffs, and since they haven’t been adequately explained, they simply assume tariffs will lead to higher prices at the grocery store, which, unfortunately, is likely true.
Cramer acknowledged that the president and his team have deliberately chosen not to focus on the stock market, likely because they do not want it to become a direct reflection of their performance. While he agrees with this approach, Cramer believes it is still important to recognize that the market is ultimately a gauge of public sentiment.
“Think of the market as a gauge of hope versus despair. The results lately demonstrate despair even if today we finally got a solid session. The cause and effect are so palpable that you don’t need me to tell you how these gains came about.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 14. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Holders: 47
Expressing confusion about MGM Resorts International (NYSE:MGM), a caller mentioned that it feels like rolling the dice. Cramer replied:
“You are rolling the dice on MGM Resorts International. I’m not a dice roller, I am a card player and I like it very much but I wouldn’t want to own that one. But you know what, we’re gonna go out west. We’re gonna talk to Wynn. Maybe I can figure out a little bit more about what to do with the casinos providing that the president doesn’t post that you’re not allowed to go to casinos anymore. Never know.”
MGM Resorts International (NYSE:MGM) is a gaming and entertainment company that operates casino resorts offering a variety of services, including gaming, lodging, dining, and entertainment, along with digital gaming options like online sports betting and iGaming through BetMGM. Longleaf Partners Fund stated the following regarding MGM Resorts International (NYSE:MGM) in its Q4 2024 investor letter:
“MGM Resorts International (NYSE:MGM) – Hospitality and gaming company MGM Resorts was a top detractor for the quarter and the year. Despite relatively strong execution by the company and opportunistic repurchases of discounted shares, the market did not like the company’s quarter-to-quarter volatility, especially in the second half of the year. When making the necessary adjustments, MGM’s core Las Vegas properties continued to grow nicely if boringly in the low-mid-single digit range during the year. MGM remains one of our larger share repurchasers in the portfolio, demonstrating its commitment to shareholder returns. The company’s hidden assets in online gaming and Asia also showed progress as the year went on. We remain confident in the management team, led by CEO Bill Hornbuckle, as they navigate these challenges and focus on long-term value creation.”
Overall, MGM ranks 7th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of MGM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MGM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
