MGM Resorts offers protection against AI disruption
The guest argued that MGM Resorts represents a highly insulated, long-lived asset that is protected from technological disintermediation because physical leisure experiences cannot be replaced by AI.
The argument
Under the 'what's not going to change' category of their framework, the guest highlighted MGM's dominant footprint on the Las Vegas Strip, Macau, and its upcoming exclusive casino development in Osaka, Japan (expected 2028/2029), as generational assets.
The thesis, stress-tested
✓ What validates it
- ✓Successful progress updates and regulatory approvals for the Osaka casino project
- ✓Sustained high occupancy and gaming revenue on the Las Vegas Strip
▸ Risks discussed
- ▸Delays in the Osaka resort development beyond 2028/2029
- ▸Macroeconomic downturns reducing consumer discretionary spending on travel and leisure
Hear it yourself
"And so that doesn't mean it's absurd, but it just means you have complacency measured in high valuations, high concentration, cheery growth expectations that go on into infinity. At the same time, you have all of this transition and uncertainty. And I think this is going to create a very, a backdrop that is going to create a lot of shock and a lot of opportunity. So does that do those transitions how do they manifest themselves, like, in the investment process, for you and Davis? Do you guys kinda try to peel the onion back on each one of those and say, where are the risks and where are the opportunities? Like, how how does that work? It's such a good question."
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