Why are Penn National (PENN), Peloton Interactive (PTON) stocks diving? - Kalkine Media

November 05, 2021 08:45 AM PDT | By Team Kalkine Media
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  • Penn National Gaming, Inc. is down after weak results and also possibly because of its engagement with Barstool Sports, whose founder Dave Portnoy is facing sex allegations.
  • Peloton Interactive posted a 6% increase in revenue for the first quarter of FY 2022 but reduced the expectation for full fiscal 2022.
  • The PENN stock fell 33.54% and Peloton fell 43.28% YTD.

Penn National and Peloton Interactive announced their quarterly results on November 4. Penn National Gaming, Inc. closed 21.08% down and Peloton Interactive, Inc. was down 4.27% on Thursday.

The PENN stock was priced at US$57.40 and the PTON stock at US$57.50 at 6:52 am ET during pre-market trading Friday, November 5.

Penn National Gaming, Inc. (NASDAQ: PENN)  

The company operates gaming and racing properties and video gaming terminals in the U.S. The company operates retail sports betting, online sports betting, online bingo, and online casino.

The Wyomissing, Pennsylvania-based consumer service company posted third quarter results on November 4. Its revenue was US$1.5 billion in the third quarter of 2021 compared to US$1.13 billion in the same quarter the previous year.

The net income was US$86.1 million with a net income margin of 5.7% compared to US$141.2 million with a margin of 12.5%, for Q3 in 2020.

The stock plunged sharply on November 4 to its lowest in a year. One of the reasons could be weak earnings and the other could be the sex allegations against Dave Portnoy, founder of Barstool Sports. Penn National holds a considerable 36% stake in Barstool Sports, bought in 2020.  

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After the allegations against the Barstool founder came out, the PENN stock fell, perhaps because of its involvement with the company. Though no allegation is confirmed yet and Portnoy denied these allegations in social media posts. 

Penn said that it is still gathering facts and will take the matter seriously, as per a Bloomberg report. 

Penn, the gaming, and casino operator company, offers sports betting under the Barstool brand across the country. Its current market capitalization is US$9.7 billion and P/E ratio is 21.2. The stock fell 33.54% YTD. 

Also Read: Booking Holding (BKNG) & Roku (ROKU) revenues soar in Q3 2021 


(Trending Stocks, Penn National Gaming, Peloton Interactive Inc.)

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Peloton Interactive, Inc. (NASDAQ: PTON) 

New York-based Peloton is a fitness company that offers an interactive fitness platform. Of its two reportable segments, connected fitness products offer the sale of bikes and other fitness products, accessories, and related services and the second is its subscription segment. 

The company announced its first-quarter fiscal 2022 results on November 4 after market close. The total revenue for the first quarter of FY 2022 grew 6% to US$805.2 million. The net loss was US$376 million or net loss per share diluted of US$1.25 for Q1. 

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The stock plummeted in the after-market hours after the results announcements. The company has reduced its full-year revenue forecast by around US$1 billion as well as reduced the forecast for profit margins and subscribers. 

People's outdoor activities are reaching back to the pre-pandemic level and with gyms opening, the fitness equipment sales for individuals may get hit. The company has a current market capitalization of US$26 billion. The stock fell 43.28% YTD. 

Also Read: US stocks close mixed after employment data

Bottom line        

With increased movement, companies that faced strife in the past year may hope for a better future but on the contrary, some companies who benefitted from the “from home” culture could expect a lower performance compared to the previous year. An investor must analyze the company's fundamentals and management approach before putting money into them.  


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