Please ensure Javascript is enabled for purposes of website accessibility

Cathie Wood Loads Up on More Skillz Stock After Record Q1 Report

By Rich Duprey - May 5, 2021 at 9:59AM

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

The star investment manager puts her money where her mouth is.

Mobile esports platform Skillz (SKLZ 7.34%) recorded yet another quarter of rising revenue, the 21st consecutive quarter in which revenue jumped year over year. And that was apparently enough for Wall Street's current investment guru, Cathie Wood, to load up again on its stock.

Wood's ARK Invest exchange-traded funds (ETFs) added another 3.1 million shares of Skillz yesterday (Wood's ETFs report their buys and sales daily), giving her nearly 15.6 million shares in total of the competitive-gameplay specialist.

Smiling friends looking at their smartphones

Image source: Getty Images.

Although Skillz saw its revenue rise in the first quarter, it also reported wider losses for the period, with adjusted EBITDA coming in at a loss of $31.1 million, compared to losses of $14.6 million a year ago.

Still, the esports company was able to exceed its own expectations on paying monthly average users (MAUs), which came in at 467,000, some 17,000 more than it guided for last quarter. However, that was below the upper end of Wall Street's forecast of 469,000 MAUs.

Last month, short-seller Eagle Eye Research issued a report questioning Skillz's revenue-recognition policies. Another short-seller, Wolfpack Research, questioned the value of its recent deal with the National Football League.

Cathie Wood ended up coming to Skillz's defense, saying the allegations were "either exaggerated or incorrect" and stemmed from not understanding the esports company's business.

Wood's ARK Next Generation Internet ETF (ARKW 3.94%) now owns 7.05 million shares of Skillz; her ARK Innovation (ARKK 4.19%) owns over 8.51 million shares.

While her purchases are yet another vote of confidence for Skillz, they don't comprise a particularly large portion of her funds' portfolios, amounting to no more than 1.92% in either of the two funds.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Skillz Inc. The Motley Fool has a disclosure policy.

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.
SKLZ
$1.90 (7.34%) $0.13
ARK ETF Trust - ARK Innovation ETF Stock Quote
ARK ETF Trust - ARK Innovation ETF
ARKK
$52.01 (4.19%) $2.09
ARK ETF Trust - ARK Next Generation Internet ETF Stock Quote
ARK ETF Trust - ARK Next Generation Internet ETF
ARKW
$63.88 (3.94%) $2.42

*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
389%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/12/2022.

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.