Gambling, Video Games Worst Performers Among S&P 500 Stocks

Betting on gambling and video games has been a big bust this year, Paul R. La Monica reported for CNN.

Photo Insert: This was one bet that didn't pay off.

Casino owner and sports betting company Penn National Gaming, which owns a big chunk of Dave Portnoy's Barstool, is the worst S&P 500 stock this year. It lost nearly half its value in 2021. Las Vegas Sands and Wynn Resorts were also market laggards, falling 37% and 22% this year, respectively.

Traders also shunned software companies that make popular games for PCs and consoles. "Call of Duty" maker Activision Blizzard, whose CEO Bobby Kotick has come under fire due to a sexual discrimination and harassment scandal at the company, has plunged more than 35%.

But the problems for video games go beyond Activision Blizzard's scandal. Well-publicized shortages of new consoles from Sony and Microsoft have hurt the broader video game sector, too. Take-Two Interactive's shares have fallen more than 20% while Electronic Arts (EA) is down nearly 15%.

Intense streaming competition is putting Big Media companies' growth into question. That's hurting CNN parent company AT&T, which is down more than 20% this year. AT&T has announced plans to combine its WarnerMedia unit with Discovery (which is also down 20% this year) to create a new media giant to be called Warner Bros. Discovery.

Shares of ViacomCBS (VIAC), Disney (DIS), and Verizon (VZ) are all in the red for 2021 as well, for reasons ranging from more competition to a lack of investor enthusiasm for dividend stocks relative to bonds.

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