"So, I have sex. People f#cking know that... everyone should f#ck the dip.” - Dave Portnoy, after sex tape leaks...
Deutsche Bank said New York wouldn't include sports betting in the FY21 budget which sparked sell-offs across the industry.
Credit Suisse then reported mid-day Tuesday, April 6th that sports betting would be included in the budget. This helped $PENN recover.
Details on New York's approval came out on Wednesday April 7th with mixed reactions. Only a few operators will be chosen and 50%-55% of their profits will go to the state of New York.
Needless to say, I don’t think Portnoy's sex tape would sink the ship. It's more likely to be a legislative move or missed earnings that'll pop this bubble.
Draftkings rallied 3% in Tuesday’s session off the positive NY news and fell Wednesday following Cuomo's details.
Another competitor, MGM Resorts, recently beat expected earnings and announced that it plans to double revenue in 2021 from their BetMGM app.
Penn National will need to prove to the market that they can grow market share and beat earnings expectations. They missed Q4 2020 earnings by 66%.
They've improved their Gross Margin % though, which means they’re finding ways to spend less per dollar they bring in.
The technicals show 5 BUY indicators and 11 SELL indicators on the daily timeframe. Let's wait for a further move down to find an entry.
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