Shares of Skillz (NYSE: SKLZ) were falling 6% in morning trading Thursday after the mobile esports platform reported third-quarter earnings that failed to impress Wall Street. The decline in the stock follows yesterday's 7% gain after a Citigroup analyst resumed coverage of the company. Image source: Getty Images.Continue reading
What's happening with Skillz stock?
Shares of mobile-gaming platform Skillz ( SKLZ -8.51%) hit a new all-time low on Tuesday, sinking as far as $1.28 per share. The stock is now down 97% from its all-time high and finished today's session down 8%. Skillz didn't have direct news today, but there was a relevant development that reportedly came from a third-party research group.
Is Skillz owned by Citigroup?
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Jon Quast owns Skillz Inc. The Motley Fool owns and recommends Skillz Inc. The Motley Fool has a disclosure policy.
Why did Twilio stock drop from $175 to $130?
Jefferies analysts cut Twilio from $175 to $130, likely for similar reasons. Once again, the culprit appears to be multiple compression across the software space, enhanced by the economic reopening turning investors away from software and communications stocks, especially "pandemic darlings" like Twilio.
What is happening with Skillz?
The mobile game company's shares have dropped along with investors' confidence. Shares of Skillz (SKLZ 4.62%) have plummeted since reaching their highs in early 2021, and the company's own forward guidance has disappointed Wall Street and investors alike.
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.
Is Skillz heavily shorted?
Skillz remains a heavily shorted stock with about 24% of its shares outstanding sold short. Much of the problem with Skillz, however, has been a lack of high-profile games on the platform like Call of Duty.
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.
Does Skillz have a future?
Skillz still has a market cap of about $1 billion, or 2.5 times its estimated revenue for 2022, after its post-earnings plunge. That price-to-sales ratio might be low for a company that generates double-digit percentage sales growth, but Skillz just told investors to expect low single-digit growth this year.
Is Skillz stock a good long term investment?
Conclusion. Skillz is among the highest upside stocks in the market and is a buy but only for long-term aggressive growth investors. People that choose to invest in Skillz should monitor the balance sheet closely. Risk averse investors should avoid the stock as there is still significant potential downside in the stock ...
Who holds Skillz stock?
Top 10 Owners of Skillz IncStockholderStakeShares ownedThe Vanguard Group, Inc.4.47%15,239,667BlackRock Fund Advisors2.99%10,204,223SSgA Funds Management, Inc.2.05%6,981,329D. E. Shaw & Co. LP1.92%6,536,0356 more rows
How much is Skillz shorted?
$SKLZ short interest is $622M 58.73M shares shorted 24.05 % SI% of Float 19.39 % S3 SI% Float 1.82 % fee Shares shorted up +502K shs, worth $5M, 0.86 %, over the last week. Shorts up +$420M in 2021 mark-to-market profits; including -$69M on today's +9.95 % move.
Who is shorting Skillz?
Short selling SKLZ is an investing strategy that aims to generate trading profit from Skillz as its price is falling. Skillz's stock is trading down $0.16 today. To short Skillz stock, an investor borrows shares, sells them and buys the shares back on the public market later to return it to the lender.
How much debt is SKLZ?
$300 millionSkillz 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. So in reality, the company has $443 million in funds, and the interest on that debt will virtually eat up the savings from cutting back its engagement spending.
Can SKLZ stock rebound?
Even if you have a high-risk tolerance, I would not suggest you put your money on SKLZ stock. Yes, it can rebound in the long term but the risks remain. Additionally, the stock will not go as high as it once did in 2021. Tread carefully and try to avoid risking your money with SKLZ stock.
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The mobile esports platform still needs to convince the market it can control customer acquisition costs
Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time.
What happened
Easy come, easy go. Shares of Skillz ( NYSE:SKLZ) were falling 6% in morning trading Thursday after the mobile esports platform reported third-quarter earnings that failed to impress Wall Street.
So what
Despite Skillz notching its 23rd consecutive quarter of revenue growth (sales rose 70% from the year-ago period to $102.1 million), questions remain about whether it can leverage its acquisition of Aarki, a global demand-side advertising platform that reaches 465 million people, to help reduce customer acquisition costs.
Now what
But Canaccord Genuity analyst Michael Graham, while saying Skillz is making good progress on expanding into new content markets, wants to see proof that the mobile esports platform can deliver on lowering costs. Although he kept his Skillz stock recommendation as a buy, he lowered the price target from $23 to $18 per share.
The esports platform provider may be in for more rough times if COVID-19 cases keep rising
Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time.
What happened
Shares of Skillz ( NYSE:SKLZ) are falling today, down by 5% as of 12:51 p.m. EDT. The mobile esports platform provider will be reporting second-quarter results after the market close. The stock is down almost 30% year to date.
So what
Wall Street is cautiously optimistic about Skillz's potential, with five of the nine analysts covering the company rating it a buy. The rest rate it a hold. The consensus price target for the stock is $24.31 per share for the next year, implying almost 80% upside, but the current quarter might be tricky.
Now what
Esports is one of the fastest-growing niches, and as the economy continues to reopen, more in-person gameplay, contests, and tournaments will take place. There may be some hesitancy on the part of the market over how the coronavirus variants will impact Skillz's business, as the U.S.
What happened
Easy come, easy go. Shares of Skillz (NYSE: SKLZ) were falling 6% in morning trading Thursday after the mobile esports platform reported third-quarter earnings that failed to impress Wall Street.
So what
Despite Skillz notching its 23rd consecutive quarter of revenue growth (sales rose 70% from the year-ago period to $102.1 million), questions remain about whether it can leverage its acquisition of Aarki, a global demand-side advertising platform that reaches 465 million people, to help reduce customer acquisition costs.
Now what
But Canaccord Genuity analyst Michael Graham, while saying Skillz is making good progress on expanding into new content markets, wants to see proof that the mobile esports platform can deliver on lowering costs. Although he kept his Skillz stock recommendation as a buy, he lowered the price target from $23 to $18 per share.
What happened
Shares of mobile-gaming platform Skillz (NYSE: SKLZ) shot up on Wednesday after a prominent analyst maintained a buy rating on the stock and set a price target almost double to where it trades right now. As of 3 p.m. ET, Skillz stock was up 14%. It's a small reprieve for shareholders who have seen the stock tumble 90% from its 52-week high.
So what
Citi analyst Jason Bazinet is keeping a buy rating for Skillz stock, according to The Fly. To Bazinet's credit, the analyst hasn't wavered in calling this stock a buy, now recommending it four times in the past year, according to TipRanks. However, the price target for Skillz stock has been falling along with the stock price.
Now what
Regarding revenue growth, Skillz is no slouch. The company has surpassed management's top-line guidance in every quarter since going public. And in the most recent quarter -- the third quarter of 2021 -- revenue was up 70% year over year.
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