The S&P 500 bets on Penn National Gaming Inc. and Caesar’s Entertainment Inc. amid the growing legalization of sports betting in the US
Penn PENN,
and CZR of Caesar,
were announced as incoming members of the S&P 500 SPX Index,
Friday afternoon, along with semiconductor manufacturer NXP Semiconductors NV NXPI and Generac Holdings Inc. GNRC, which sells power generation equipment. Flowserve Corp. FLS, SL Green Realty Corp. SLG, Xerox Holdings Corp. XRX and Vontier Corp VNT will go down to the S&P MidCap 400 to make room. The changes are expected to take place before the start of negotiations on March 22.
Penn has seen its stakes rise nearly 750 percent over the past year, amid greater legalization of sports betting and its investment in the popular sports website Barstool. Penn uses the Barstool brand on its sports gaming platform, which competes with Flutter Entertainment PLC FLTR,
DraftKings DKNG,
William Hill WMH,
Caesar and others like the US states legalize sports gambling. Michigan became the fifteenth state to allow online sports betting earlier this year.
Barstool founder Dave Portnoy has often spoken of the shares while publicly investing during the COVID-19 pandemic. Penn shares closed the record high of $ 130.47 on Friday, and then gained about 7% in trading after the schedule after the announcement.
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Caesar’s is in the process of teaming up with William Hill to create a bigger rival for online sports betting in the United States, and stocks have enjoyed strong gains over the past year, after falling in late February. and early March last year as fears of an impending pandemic grew. Caesar shares have gained 550% in the last twelve months and prices have risen more than 5% in off-hours trading.
Shares of NXP have doubled in the last year, amid the shortage of semiconductors that have sharply affected carmakers, a key segment for NXP, and shares rose more than 5% in the extended session. Generac has increased by almost 250% in the last twelve months and has gained approximately 4% in final operations.
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Xerox shares have struggled despite investor Carl Icahn shaking up the change to the printing giant while owning more than 15% of the shares. Shares fell after a hostile takeover attempt by HP Inc. HPQ,
it failed early last year and gained 12.6% in the last twelve months, as the S&P 500 added 58.8%. Shares of Xerox fell less than 2% in stock after hours on Friday. Shares of SL Green and Vontier also fell less than 2% on Friday after trading, while Flowserve remained steady.