Penn Entertainment’s Digital Business Has Already Eaten Near $2b Without Visible Results

Summary:

  • Penn Entertainment stock has fallen due to failed digital efforts, including $850m investment in Barstool Sportsbook, with less than 5% market share.
  • Recent moves, including a $1.5b partnership with ESPN for ESPN Bet, have not excited investors, with stock trading below $20.
  • S&P Global downgraded Penn’s ratings to B+ due to expected digital losses of $350m to $420m, making the stock a risky investment.
Mature man wins the online bet

PENN BOUGHT ARRACTIVE DEMOS TWICE. NIETHER BARSTOOL FOR ESPN TO DATE HAVEN’T PROVEN THAT ASSUMPTION.

Hirurg

  • Penn Entertainment (NASDAQ:PENN): Two key moves needed to turn Mr. Market positive on the stock again
  • Little question that a succession of questionable moves has sunk the once glowing prospects for Penn shares to a sell call by several analysts—including


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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