Penn National sheds more than $2.5 billion in valuation after earnings miss, allegations against Barstool’s Portnoy
Shares of Penn National Gaming Inc. PENN,
The decline wiped away more than $2.5 billion from Penn National’s market cap, the most the gambling company has lost from a stock decline in its 27-year history on the public markets, according to Dow Jones Market Data. While Penn lost about $3.6 billion in market cap on a November day in 2013, that was from spinning off another business.
The 22% decline for the stock price would be the worst Penn National has absorbed since March 2020, when concerns about the COVID-19 pandemic thrashed the stock market, with casino stocks taking a massive hit. Penn National rebounded soon after on optimism for its tie-up with Barstool Sports, and was added to the S&P 500 index SPX,
Penn National’s spiral began when it reported a hefty miss on quarterly profit before the session opened. Penn’s profit fell nearly 40% from a year ago, with its chief executive blaming the effects of Hurricane Ida and the spread of the Delta variant of COVID-19.
Later in the day, allegations emerged against Dave Portnoy, founder of the Barstool Sports sports-media company, detailing occasions where he was aggressive and rough with women. As detailed in a Business Insider story, one woman who had intimate relations with Portnoy said she felt like she was “just a human sex doll.” Another woman said she fought mental health issues like depression after their encounter.
Portnoy responded to the article on Twitter TWTR,
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Penn National shares were headed for their lowest close in almost exactly a year, since Nov. 3, 2020.
As of the afternoon session, shares were down more than 3% in the past year, wiping away a steep rise that happened through the end of 2020 and beginning of 2021.
