Why Penn National Gaming's Stock Was Plummeting Today
Investors of Penn National Gaming (NASDAQ: PENN) got a dose of reality today, as Macao's results for April came in. Revenue was down 97% year over year for the casino city, and Penn National's stock is down with that news. As of 11:45 a.m. EDT, shares were down 13% and falling.
Today's news from Macao doesn't materially affect Penn National Gaming. The only thing it did was rattle investors' sentiment. This emotional response creates a volatile stock from day to day, and this volatility will likely continue until the coronavirus is fully behind us.
Due to the COVID-19 pandemic, visitor traffic to Macao has plummeted, along with gambling revenue. During April, Macao only generated 754 million pataca (around $95 million), according to government statistics. It's a tangible reminder of what happens to casino revenue when gamblers aren't there (just in case a reminder was needed).
Source Fool.com
