What Happened?

Shares of luxury ski resort company Vail Resorts (NYSE:MTN) jumped 7.6% in the morning session after the company reported decent second-quarter (fiscal 2025) results. Sales were in line, though skier visits were slightly below expectations. Meanwhile, earnings per share surpassed Wall Street's estimates. Looking ahead, the company reaffirmed its full-year EBITDA guidance, which was reassuring. Overall, the quarter was solid.

Is now the time to buy Vail Resorts? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Vail Resorts’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. 

The biggest move we wrote about over the last year was 9 months ago when the stock dropped 14.3% on the news that the company reported weak first quarter earnings results. Its EPS missed and its revenue fell short of Wall Street's estimates. Management attributed the weakness to "a combination of unfavorable conditions and broader industry normalization post-COVID following record visitation in the U.S. during the 2022-2023 ski season." These challenges drove the 3.2% decline in Skier visits during the quarter. Overall, the results could have been better.

Vail Resorts is down 6.6% since the beginning of the year, and at $163.53 per share, it is trading 29.6% below its 52-week high of $232.25 from April 2024. Investors who bought $1,000 worth of Vail Resorts’s shares 5 years ago would now be looking at an investment worth $1,051.

Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.