MGM Resorts (MGM) is jumping 10% after the casino and hotel owner reported stronger-than-expected fourth-quarter results, made positive comments about its recent performance and outlook, and predicted that its online gambling joint venture would generate positive EBITDA this year. A Look at MGM's Q4 Results The company reported earnings per share, excluding some items, of 45 cents, well above analysts' average estimate of 30 cents. On the top line, its sales dropped 1% versus the same period a year earlier to $4.3 billion. However, its revenue was slightly above analysts' mean outlook. Aerial shot of an entertainment resort, its buildings and gaming amenities sprawling along the seafront. The company's regional businesses were standout performers last quarter, generating revenue of $932 million, up from $873 million in Q4 of 2023. Conversely, the sales of its Las Vegas properties fell 6% year-over-year to $2.2 billion. MGM blamed the decline largely on the strength of its Vegas business during the Formula One auto race held in the city in Q4 of 2023. The revenue of MGM Digital, which does not include BetMGM, jumped 15% in Q4 versus the same period a year earlier to $140 million. MGM's Comments MGM noted that its revenue had risen in January in the U.S., while its convention bookings had jumped 43% in December versus November. Additionally, the firm reported that its average daily hotel room rates are "on pace" to increase "for most of this year." And the company expects BetMGM, its online betting joint venture with Entain, to enter the black this year from an EBITDA perspective. Finally, the firm believes that MGM Digital, which will include its joint venture in Brazil that kicked off earlier this month, can become a $1 billion business with "healthy margins." in the "medium term." While we acknowledge the potential of MGM, our conviction lies in the belief that some 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. READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock Disclosure: The author owns shares of MGM but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.