Why Penn National Gaming Stock Jumped Nearly 11% in July
Shares of casino operator Penn National Gaming (NASDAQ: PENN) rose just shy of 11% in July according to data from S&P Global Market Intelligence. Through the first seven months of 2020 the shares are up a huge 32% (likely helped along by a new sports betting business the company is working on). But that didn't happen in a straight line, with the stock down a painful 80% at one point following the economic shutdowns related to COVID-19. July wasn't actually wasn't the biggest month for the stock, but there was still some important news to digest.
The reason for Penn National Gaming's 80% plunge was the global effort to contain the spread of the coronavirus, which shut down non-essential businesses and saw governments ask residents to stay home. Both are terrible for casino operators, which make money by luring gamblers en masse to their facilities for what is a very non-essential form of recreation. However, after shutting down for a spell, the company has started to reopen its doors again.
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Source Fool.com
