Skillz stock has fallen so much that it now trades slightly below its book value per share of $1.35, according to Yahoo Finance. But a word of warning to potential value investors: Its book value per share will likely continue to fall throughout 2022.
Full Answer
Why did Skillz stock fall so hard?
However, Skillz was forced to spend heavily to attract and retain those users. The company's sales and marketing expenses surged 95% to $155 million, outpacing its revenue by a startling 42%. Skillz's stock price fell sharply on Thursday. Image source: Getty Images.
How much did Skillz lose in Q1?
All told, Skillz generated an operating loss of $104 million and a net loss of $99 million, or $0.25 per share. That compares to operating and net losses of $43 million and $67 million, respectively, in the year-ago period.
How did Skillz's revenue rise 61% year over year?
Skillz's revenue rose 61% year over year to $108.8 million in the fourth quarter. The gains were driven by a 56% rise in paying monthly active users to 0.6 million and a 3% increase in average revenue per paying user to $59.
Should you worry about Skillz management's forecast for 2022?
Management's forecast for 2022 likely added to investors' concerns. Skillz guided for full-year revenue of $400 million, representing year-over-year growth of only 4%. The company also projected another year of heavy losses, including an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of negative 37%.
What happened Skillz stock?
Shares of Skillz (SKLZ -8.59%) have plummeted since reaching their highs in early 2021, and the company's own forward guidance has disappointed Wall Street and investors alike.
Why did Skillz stock go down?
The drop after Q4 earnings continues a larger decline in the gaming company's stock price. Skillz (SKLZ 8.99%) stock is down 15.4% after the company reported earnings on Feb. 24. Investors were not pleased with continued losses on the bottom line.
Who bought Skillz stock?
What type of owners hold SKILLZ INC stock?NameHoldValueVanguard Group Inc3.78%$30.02MCasey Chafkin3.12%$24.75MBlackrock Inc2.82%$22.37MAndrew Paradise2.69%$21.40M6 more rows
Is Skillz losing money?
In 2021 Skillz did deliver growth, revenue 67% ahead of 2020. But operating losses nearly tripled to $287 million, and the net loss was $181 million. SKLZ stock ended the year with $590 million in cash and marketable securities on the books.
Is Skillz undervalued?
Undervalued because investors think the company will run out of money and are pricing it at near-cash levels. But an analysis of their cash burn, combined with operating statements made by the company during their recent earnings announcement and Investor Day calls, suggests otherwise.
Is Skillz stock a good buy?
From Q1 2021 to Q3 2021, Skillz has increased paying monthly active users from 467,000 to 509,000. Management acknowledges there is plenty of room to lower acquisition costs and is implementing initiatives to make progress on that front. For one, it is working to bring hit game titles to the platform.
Who holds SKLZ stock?
Top 10 Owners of Skillz IncStockholderStakeShares ownedWildcat Capital Management LLC6.35%21,632,157Renaissance Technologies LLC4.72%16,074,900The Vanguard Group, Inc.4.47%15,239,667BlackRock Fund Advisors3.00%10,204,2236 more rows
Who is invested in SKLZ stock?
Largest shareholders include Atlas Venture Associates IX, LLC, Wildcat Capital Management, LLC, Renaissance Technologies Llc, Vanguard Group Inc, T Ventures Management Co, Ltd., BlackRock Inc., State Street Corp, D. E. Shaw & Co., Inc., Millennium Management Llc, and VTSMX - Vanguard Total Stock Market Index Fund ...
Is SKLZ a buy or sell?
Skillz has received a consensus rating of Buy. The company's average rating score is 2.50, and is based on 3 buy ratings, 3 hold ratings, and no sell ratings.
Does Skillz have debt?
Skillz has $743 million in cash and short-term investments at the end of 2021, but it also has $300 million in debt at a 10.25% interest rate.
What happened
Shares of mobile-gaming platform Skillz (NYSE: SKLZ) were trading modestly higher for most of Tuesday's session. But around 1:30 p.m. EDT, the stock suddenly spiked higher, seemingly out of nowhere. As of this writing, the stock is up 12%.
So what
A Reddit user posted that they had purchased $4.8 million in Skillz stock. Normally, I'd be reluctant to mention something like this. But there's no other news from Skillz today. Moreover, the time of the Reddit post roughly corresponds to the jump in Skillz stock. Therefore, this possibility can't be dismissed.
Now what
Wondering if you should join the new wave of Skillz investors? I'll leave you with two thoughts. First, I wouldn't recommend ever buying or selling a stock based solely on what someone else is doing.
