Business

Penn National sheds $2.69 billion in valuation after earnings miss, allegations against Barstool’s Portnoy

Shares of Penn Nationwide Gaming Inc. plummeted greater than 20% on Thursday after a big third-quarter profit miss and allegations of sexual misconduct in opposition to Barstool Sports activities’ founder.

The decline wiped away $2.69 billion from Penn Nationwide’s
PENN,
-21.08%

market cap, essentially the most the playing firm has misplaced from a inventory decline in its 27-year historical past on the general public markets, in keeping with Dow Jones Market Information. Whereas Penn misplaced about $3.6 billion in market cap on a November day in 2013, that was from spinning off one other enterprise.

The 21.1% decline for the inventory value was the worst Penn Nationwide has absorbed since March 2020, when issues in regards to the COVID-19 pandemic thrashed the inventory market, with on line casino shares taking a large hit. Penn Nationwide rebounded quickly after on optimism for its tie-up with Barstool Sports, and was added to the S&P 500 index
SPX,
+0.42%

in March of this 12 months.

See additionally: AMC stock slips after another analyst turns bearish, saying retail investors will eventually ‘cash out and move on’

Penn Nationwide’s spiral started when it reported a hefty miss on quarterly profit before the session opened. Penn’s revenue fell practically 40% from a 12 months in the past, with its chief government blaming the consequences of Hurricane Ida and the unfold of the Delta variant of COVID-19.

Later within the day, allegations emerged in opposition to Dave Portnoy, founding father of the Barstool Sports activities sports-media firm, detailing events the place he was aggressive and tough with girls. As detailed in a Business Insider story, one lady who had intimate relations with Portnoy stated she felt like she was “only a human intercourse doll.” One other lady stated she fought psychological well being points like melancholy after their encounter.

Portnoy responded to the article on Twitter
TWTR,
-1.56%
,
the place he denied most of the allegations, calling them “jarring,” earlier than including that “cancel tradition has been coming for me for a decade.”

See additionally: Can you buy Shiba Inu on Robinhood?

Penn Nationwide shares suffered their lowest shut in nearly precisely a 12 months, since Nov. 3, 2020. Shares at the moment are down 3.9% previously 12 months, wiping away a steep rise that occurred by the tip of 2020 and starting of 2021.

https://www.marketwatch.com/story/penn-national-sheds-more-than-2-5-billion-in-valuation-after-earnings-miss-allegations-against-barstool-founder-11636052914?rss=1&siteid=rss | Penn Nationwide sheds $2.69 billion in valuation after earnings miss, allegations in opposition to Barstool’s Portnoy

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