Penn Shrinks Online Loss 🏈

Plus, ADT's "unauthorized activity."

October 08, 2024

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Today is Tuesday, October 8, 2024.

The Early Bird Index today is 71.89.

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Penn Shrinks Online Loss 🏈

PENN Entertainment (Nasdaq: PENN) called out improvements in its online gambling business Monday, sending the stock up 1.51% in after-hours trading.

Details: Penn’s online gambling business expects to lose $100 million to $90 million in the third quarter, which sounds awful, but this is better than its previous outlook of losing $135 million to $115 million in the quarter.

Background: The ESPN Bet sportsbook has been operated by Penn since 2023. This co-branding with ESPN was meant to lift Penn’s stock, but that hasn’t been the case.

Stock Price: Penn is down 28% this year thanks to mixed financial results.

Early Bird’s Nest Egg Gains: Penn’s online gambling business, particularly its ESPN Bet platform, has been facing several challenges in 2024.

  • The second quarter of 2024 saw a 9.7% year-over-year revenue loss in the online business.

  • Despite partnering with the globally recognized ESPN brand, Penn has struggled to capture significant market share in the online sports betting space.

  • Recent layoffs in Penn’s digital business suggest ongoing operational challenges and the need to reduce costs in the face of underperformance.

Final Thoughts: While Penn has fallen in 2024, competitors have shown more positive results.

Notables

Notable Earnings Today: PepsiCo (Nasdaq: PEP), Accolade (Nasdaq: ACCD), Saratoga Investment (NYSE: SAR).

Notable IPOs Today: South Bow Corporation (NYSE: SOBO).

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: Trade Balance / Imports / Exports (8:30 a.m. ET), EIA Short-Term Energy Outlook (12:00 p.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

ADT's "Unauthorized Activity"

Safe GIF by ADT Security

Gif by ADTSecurity on Giphy

A security company getting hacked? That appears to be the case with ADT (NYSE: ADT), which reported an incident on Monday that caused the stock to drop by 1.82% in after-hours trading.

Details: On Monday, ADT said it recently became “aware of unauthorized activity” on its network in the form of an unauthorized actor.

  • ADT said it took steps to shut down the unauthorized access.

  • The company said that while some employee data may have been accessed, it's unlikely that customer data was affected.

Background: If this seems like Déjà vu, it’s because ADT just announced a data breach in August.

Final Thoughts: ADT’s stock is basically flat for the year after this news.

Shiba Inu Slips on Monday

The price of the cryptocurrency Shiba Inu dropped about 5% on Monday. Most other major cryptos performed better on Monday.

Final Thoughts: Despite the drop, Shiba Inu is still up 35% in the last 30 days.

Costly Future: Could war in the Gulf push oil to $100 a barrel? (The Economist)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.