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Why is Skillz Stock Down? It's Worth Looking Into

By Jose Najarro - Mar 20, 2021 at 8:18AM

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Skillz stock is down big. It could be a buying opportunity for this growth.

In todays' video, I talk about Skillz (SKLZ 4.38%) 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.

  1. Skillz issued a public offering of 32 million shares at $24, 17 million by the company and 15 million by shareholders.
  2. Growth stocks are seeing a robust downturn at the moment.
  3. 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.

  1. Revenue for FY2020 grew 92% year-over-year and are expected to grow near 60% for FY2021.
  2. 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.
  3. New partnership with NFL gaming and Play Mechanix.

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Stocks Mentioned

Skillz Inc. Stock Quote
Skillz Inc.
SKLZ
$1.67 (4.38%) $0.07

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