In today's video, I look at Skillz's (SKLZ 10.32%) recent stock price movements and explain why long-term investors should ignore the volatility.
Three Reasons Skillz's Long-Term Investors Should Ignore The Noise:
- International expansion: Skillz is on track to launch in India later this year. Management believes the expansion will increase its addressable market by 65%. At the moment, international revenue is less than 10% of Skillz's revenue.
- Expansion to other markets: Skillz is exploring opportunities beyond gaming that could benefit from the competition platform, like fitness and education.
- Conservative guidance by management: The guidance reported by Skillz for Q1 of 2021 shows a growth of 84% year over year and 18% quarter over quarter. This guidance does not take into account any revenue from potential new games, which can provide massive upside during future earnings reports.
Investors should note that Skillz will be a very volatile stock and should be prepared for huge price swings.
Click the video below for my full thoughts.
*Stock Prices used were the mid-day prices of April 21, 2021. The video was published on April 21, 2021.