Penn Entertainment (NASDAQ: PENN) was one of the market darlings during the pandemic as investors thought it could play a big role in online gambling after the Barstool Sports acquisition. But Barstool was never a great fit within Penn Entertainment and earlier this year the company sold Barstool back to Dave Portnoy just months after completing the $500 million acquisition.

On top of the Barstool debacle, the 2018 acquisition of Pinnacle Entertainment left the company with $2 billion of debt just in time for the pandemic to impact the business. The upside investors saw in Penn Entertainment a few years ago seems to have faded, but does that leave investors with an opportunity to buy the company at a discount?

The chart below shows the wild path Penn Entertainment has been on. The stock exploded only to drop to below pre-pandemic levels. Operationally, revenue has grown, but not in line with Las Vegas-focused peers who have seen record revenue on the Las Vegas Strip.

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Source Fool.com