Betting on Earnings

Yes I know I know, “Never play earnings,” I have said it enough. But I have entertained the idea of playing Penn National Gaming ($PENN) earnings before, and here I am entertaining it again. After Penn’s last earnings report, the stock shot up more than 5 dollars in the day, and this Thursday, October 29th, Penn could certainly do it again. Penn has been putting its acquisition of Dave Portnoy’s Barstool sports to work, creating a sports betting app this quarter that is already fully released in Pennsylvania. For how recreational sports betting has become recently from sports betting apps, this new creation has surely generated solid revenue already for Penn. If you combine this with the band of retail investors Portnoy has behind him on his “Davey Day Trading Global,” you get a highly followed stock with an outpouring of optimism, announcing hopefully a positive earnings report.

-Darnel Shillingford

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