In todays' video, I talk about Skillz (SKLZ +0.46%) and why the stock has dropped so much in the past few days. I will also share some reasons to overlook the negative sentiment. Skillz has designed a platform that helps game developers include a competitive aspect into its games, increasing overall user engagement and play time.
These are three reasons why Skillz is down.
- Skillz issued a public offering of 32 million shares at $24, 17 million by the company and 15 million by shareholders.
- Growth stocks are seeing a robust downturn at the moment.
- The most recent earnings showed a decline in monthly active users (MAU) compared to last quarter.
These are three reasons why these reasons should be overlooked.
- Revenue for FY2020 grew 92% year-over-year and are expected to grow near 60% for FY2021.
- Skillz, before the offering, already had a strong balance sheet of no debt and 243 million in cash, as seen in its Q4 earnings report.
- New partnership with NFL gaming and Play Mechanix.
