Please ensure Javascript is enabled for purposes of website accessibility

3 Reasons SKLZ Is a Strong Long-Term Investment Stock

By Jose Najarro - Apr 22, 2021 at 9:15AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Skillz's stock price has been all over, but long-term investors should ignore the volatility and focus on future moves.

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:

  1. 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.
  2. Expansion to other markets: Skillz is exploring opportunities beyond gaming that could benefit from the competition platform, like fitness and education. 
  3. 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. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Skillz Inc. Stock Quote
Skillz Inc.
$1.39 (10.32%) $0.13

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.