Dave Portnoy Lays Out How Bartsool Sports Separates Penn National From Other Stocks

Barstool Sports Founder and President Dave Portnoy took to Twitter on Tuesday morning to defend the share price of Penn National Gaming PENN.

Earlier this year, Penn National bought a 36% stake in Barstool Sports and has enjoyed a new loyal following thanks to Portnoy and Barstool's popularity.

What Portnoy Thinks: Morgan Stanley recently downgraded Penn National. Analyst Thomas Allen believes its valuation was too high after a 100% gain. Portnoy took to Twitter in response mainly to the analyst's $55 price target:

• "People root for Barstool like we’re a sports team"
• "They wear our merch. They wear our letters."
• "They root for us. They follow us."
• "That's why the PENN stock rockets."
• "It's owned by the everyday man... It's owned by the fans."

Portnoy brought up the case for the built-in following of him and Barstool being a huge marketing advantage for Penn National.

“[We have an] entire marketing force that we don’t have to pay,” Portnoy said. “We have a marketing force that you can’t buy."

This is what I tell people about $Penn. I could be wrong. Granted I haven’t been wrong for 2 decades and made all my partners rich but I guess I could be wrong this time. #PennArmy pic.twitter.com/x7ipSegECB

— Dave Portnoy (@stoolpresidente) September 1, 2020

Benzinga’s Take: Even the Morgan Stanley downgrade of Penn National came with some praise for its Barstool ties. Allen highlighted the upcoming launch of the Barstool sports betting app.

“Based on Barstool’s significant awareness/engagement (100 million social media followers), we forecast it achieving 10% market share of US sports betting,” Allen said.

The analyst expects DraftKings'DKNG market share to fall from 30% to 25%, taking a hit from the Barstool app launch and other sports betting players.

PENN Price Action: Shares of Penn National hit new 52-week highs in early morning trading Tuesday. Shares were up 13.7% to $58.13 at the time of publication.

See Also:

Dave Portnoy On Day Trading: 'I Can't Be Held Responsible For Total Idiots'

DraftKings Vs. Penn National: Which Company Will Win The Mobile Sports Betting Race?