Why MGM Resorts (MGM) Stock Is Dropping Today

NEW YORK (TheStreet) -- MGM Resorts International  (MGM) shares are falling, down -2.7% to $24.45, in trading on Monday following reports of weak revenue during the first week of June in China's Macau gambling region according to analysts at Wells Fargo (WFC).

Revenue is 6% below the weekly average this year despite the first week of the month encompassing two weekends.

The weak June sales numbers follows an equally disappointing April in which revenue at the tourist destination rose 9.4% from the previous year, well below analysts 14.5% expectations.

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TheStreet Ratings team rates MGM RESORTS INTERNATIONAL as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate MGM RESORTS INTERNATIONAL (MGM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."

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