PENN <a href="https://comicvibe.com/study-how-live-entertainment-turns-attention-into-action/” title=”Study: How Live Entertainment Turns Attention into Action”>Entertainment, Inc. (PENN) Stock Dropped 31%: What’s Behind the Sell-Off?
- PENN
-0.53% - ^GSPC
+0.40%
Greenlight Capital, an investment management firm, recently released its Q3 2026 investor letter. A copy of the letter can be downloaded here. The funds returned -3.3% in the third quarter of 2026, compared with a 2.3% gain for the S&P 500, bringing their year-to-date return to -1.5% against the index’s 12.7% advance. The disappointing performance reflected weakness across the fund’s long portfolio, which declined 8.5%, while its short portfolio gained 7.1%. Several holdings fell between 10% and 25% without identifiable company-specific catalysts. A significant portion of the letter focused on the economics of artificial intelligence. The firm estimated that current worldwide end-user AI revenue is probably below $100 billion, compared with the approximately $30 trillion total addressable market claimed by some industry participants. It also highlighted the intense competition among AI providers, the availability of open-source models, and the possibility that substantial capital could be destroyed during the infrastructure buildout. The macro portfolio lost 2.0% during the quarter, bringing its year-to-date decline to 6.0%, largely because the fund’s position anticipating Federal Reserve rate cuts moved against it. Greenlight reduced that position by one-third for risk-management purposes. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its third-quarter 2026 investor letter, Greenlight Capital highlighted stocks like PENN Entertainment, Inc. (NASDAQ:PENN). PENN Entertainment, Inc. (NASDAQ:PENN) is a gaming and entertainment company that operates casinos, racetracks, and online sports betting and iGaming platforms. The one-month return of PENN Entertainment, Inc. (NASDAQ:PENN) was approximately 6.60%. Its 52-week trading range is between $11.65 and $22.36. On November 2nd, 2026, PENN Entertainment, Inc. (NASDAQ:PENN) stock’s closing price is $1.02 and market capitalization is $2.28 billion.
Greenlight Capital stated the following regarding PENN Entertainment, Inc. (NASDAQ:PENN) in its Q3 2026 investor letter:
“PENN Entertainment, Inc. (NASDAQ:PENN) declined 31%, along with most other regional gaming and casino stocks.”
PENN Entertainment, Inc. (NASDAQ:PENN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 41 hedge fund portfolios held PENN Entertainment, Inc. (NASDAQ:PENN) at the end of the second quarter, which was 54 in the previous quarter. While we acknowledge the risk and potential of PENN Entertainment, Inc. (NASDAQ:PENN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
