Shares of Penn National Gaming Inc PENN fell 21% on Thursday following the company's earnings miss, as well as a negative story about Barstool Sports founder Dave Portnoy.
Earnings Print: Penn reported third-quarter revenue of $1.5 billion, in line with street estimates. Earnings of 52 cents per share missed the analyst consensus of 89 cents.
Penn highlighted the Barstool Sportsbook sports betting app and its progress in getting into more states.
Penn bought a 36% stake in Barstool in early 2020.
Insider's Allegations: Later in the morning, Business Insider called out Portnoy's sexual practices, specifically highlighting two incidents.
One woman traveled to Portnoy’s Nantucket home and said she had a “traumatic experience.”
“It was so rough I felt like I was being raped,” the woman told a friend in a text. “It hurt and I was literally screaming in pain.”
Another woman interviewed by Business Insider said she was choked and filmed without permission. The woman suffered from depression and said she became suicidal after the event.
Portnoy Responds: Portnoy took to Twitter after the report came out, calling the Business Insider article a "hit piece."
"I'm not surprised this article came out,” Portnoy said. “Not the normal hit piece, far more serious allegations.”
Portnoy knew a reporter was digging around, with girls telling him he was being portrayed a certain way in the interviews.
"From day one, I don't know why [the Business Insider reporter] decided to do it, I know cancel culture has been coming for me for a decade. This is just the next iteration. But she knew what she was going to write and she was going to find the narrative to fit it from day one," he said.
Portnoy said "at no point was it not 100 percent consensual. At no point did she ask me to stop" and said he was stunned to hear the allegations.
“I’ve got a target on my back," he said. "Business Insider doesn’t give a f*** about destroying lives.”
Why It's Important: In April, Penn shares fell after a sex tape of Portnoy leaked, which he quickly brushed off.
Penn National gets the majority of its revenue from its casino business. The drop in Penn's share price Thursday could show investors are taking more stock in Portnoy and the Barstool Sports brand than the casino segment.
Shares traded between $56.35 and $70.90 on Thursday, eventually closing at $57.40.
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