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
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
in March of this 12 months.
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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
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.”
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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