The Barstool Brand brings immense value to Penn National in a couple of ways.įirst, Barstool Sports is extremely popular with young males under 30, a very lucrative demographic. Penn National's deal to acquire a significant stake in Barstool Sports was a brilliant move. Barstool Sportsbook Is Heading Betting Expansion In this expanding betting market where cash burn is high, I worry that Penn's lofty valuation will be tough to justify despite the value that Barstool brings to the table. The company's financials are driven by its brick and mortar casino properties, and the financials of Penn National are mediocre at best. Despite this pullback, I have some questions about the stock. After shares have touched as high as $142 per share, the stock has pulled back to $88. Investors have applauded this sequence of events, driving shares to soaring heights. Penn National is using the Barstool Brand to drive its efforts into US sports betting, and i-gaming, competing with the likes of DraftKings ( DKNG ). In just over a year, Penn National Gaming's brand and image has become ubiquitous with the popular media company. ( NASDAQ: PENN) struck to acquire 36% of Barstool Sports in early 2020 for just $163 million has been lauded as a home-run. Photo by welcomia/iStock via Getty Images
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