Billionaire Mason Hawkins’ 10 Small-Cap Stocks with Huge Upside Potential

3. MGM Resorts International (NYSE:MGM)

Market Capitalization: $8.96 billion

Number of Hedge Fund Holders: 47

Southeastern Asset Management Stake: $83,476,943

Analyst Upside Potential: 51.56%

MGM Resorts International (NYSE:MGM) is an international gaming, hospitality, and entertainment company that offers a wide range of hotels and casinos. The company operates through four main business segments including the Las Vegas Strip Resort, Regional Operations, MGM China, and MGM Digital.

On April 28, Jefferies analyst David Katz kept a Buy rating on the stock with a price target of $53. The analyst noted that the company’s BetMGM joint Venture delivered a robust 34% year-over-year growth, driven by a 68% growth in online sports betting revenue. Katz highlighted that this growth represents a significant upside for MGM Resorts International (NYSE:MGM) considering the uncertain macroeconomic environment.

Moreover, earlier the company released its full-year results for 2024, reflecting a 7% year-over-year growth in net revenues, which reached $17.2 billion. MGM China contributed to the profitability with a record EBITDAR of $1.1 billion, indicating a 25% increase year-over-year. Nightview Capital mentioned MGM Resorts International (NYSE:MGM) in its Q4 2024 investor letter stating that the company is expanding beyond its gaming operations into the hospitality segment. The company’s non-gaming revenue mix now accounts for more than 70% of its revenue. Here’s what the fund said about the company.

“Travel and entertainment are transforming as consumers prioritize experiences over material goods. This isn’t a return to pre pandemic norms—it’s a reinvention of how we connect, explore, and enjoy life. Travelers seek uniqueness and personalization, while entertainment blends digital and physical realms to create new experiences. The companies leading this evolution are redefining tradition through innovation, delivering unforgettable moments to a new generation. These businesses are not just adapting—they’re shaping the future of the experience economy.

MGM Resorts International (NYSE:MGM): Core Opportunity: MGM is evolving beyond gaming, focusing on luxury experiences, strategic partnerships, and international expansion to redefine hospitality.

Competitive Advantage: Revenue Mix: Non-gaming sources now account for 70% of revenue at flagship properties like the Bellagio.

Global Expansion: Projects include a $10 billion integrated resort in Osaka and ventures in Brazil, Thailand, and the UAE.

Digital Innovation: The BetMGM platform integrates digital engagement with physical resorts, appealing to millennial and Gen Z travelers.

Investment Case: MGM’s focus on blending physical and digital experiences positions it as a global leader in hospitality. Its innovative strategy aligns with shifting consumer preferences, and we believe its long history of operational success will continue.”