Shares of Penn Nationwide Gaming Inc.
plummeted greater than 20% on Thursday after a giant third-quarter revenue miss and allegations of sexual misconduct towards Barstool Sports activities’ founder.
The decline wiped away greater than $2.5 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 line with Dow Jones Market Knowledge. 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 22% decline for the inventory worth could be 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 an enormous hit. Penn Nationwide rebounded quickly after on optimism for its tie-up with Barstool Sports activities, and was added to the S&P 500 index
in March of this yr.
Penn Nationwide’s spiral started when it reported a hefty miss on quarterly revenue earlier than the session opened. Penn’s revenue fell practically 40% from a yr in the past, with its chief govt blaming the consequences of Hurricane Ida and the unfold of the Delta variant of COVID-19.
Later within the day, allegations emerged towards Dave Portnoy, founding father of the Barstool Sports activities sports-media firm, detailing events the place he was aggressive and tough with ladies. As detailed in a Enterprise 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 despair 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 had been headed for his or her lowest shut in nearly precisely a yr, since Nov. 3, 2020.
As of the afternoon session, shares had been down greater than 3% prior to now yr, wiping away a steep rise that occurred via the top of 2020 and starting of 2021.