New York, March 2, 2026, 10:00 (ET) — Regular session
- PENN dropped roughly 6% out of the gate, pulling back after a two-day rally that ran through Friday.
- Quarterly earnings and a Wells Fargo upgrade kicked off a late-week rally in the stock.
- U.S. stocks slipped at the open, with broader indexes down as traders assessed tensions in the Middle East and the impact of rising energy costs.
PENN Entertainment fell 6.1% to $14.68 Monday, paring a chunk of last week’s sharp run-up. Shares had surged 16.8% on Feb. 26, then tacked on another 6.8% the following day.
The retreat is significant for PENN, which has been working to persuade investors that its online betting arm can halt cash burn without putting growth in jeopardy. Now, after last week’s action, the stock is back to reflecting whether that narrative stands once the noise dies down.
This stretch isn’t helping risk appetite much. Wall Street slipped at the open, Nasdaq dropping 1.5% out of the gate as traders factored in possible inflation and the prospect of trade snags from the Middle East conflict.
PENN shares jumped late in the week after the company’s quarterly report. CEO Jay Snowden highlighted that trends are picking up and stuck to the forecast for “break-even adjusted EBITDA” in the Interactive segment by 2026. Adjusted EBITDA, a measure that removes interest, tax, and certain non-cash items, is often used to gauge profitability. Nasdaq
Wells Fargo handed PENN an upgrade to “equal weight” from “underweight” on Feb. 27, Fintel data showed, nudging its price target up to $16 from $15. Analyst action sparked the move. Nasdaq
PENN is still wrestling with governance issues in the wake of its run-in with activist investor HG Vora. Last week, the company reached a cooperation deal and brought on three new directors, according to Reuters, following criticism from the investor over the stock’s decline and capital moves. “PENN made a poor digital investment” with BarStool and hasn’t delivered profitability in digital yet, said Morningstar analyst Dan Wasiolek. Reuters
Early in the session, moves among peers were a mixed bag. The competitive landscape, though, remains largely the same. Online sports betting continues to be crowded, with FanDuel and DraftKings holding on to the top spots for U.S. market share across most states.
Another angle for Monday: last week’s sharp climb sets up a quick reversal, especially when macro jitters flare. Consumer-facing stocks often take the first punch. Oil holding up and a defensive mood? Leisure names can tumble, even absent any new headlines tied to them.
Investors want clearer signals on 2026 outlays, tighter marketing controls, and signs that Interactive is trimming its quarterly losses. The next earnings update lands around April 30, as listed on Investing.com’s calendar.
