For Skillz stock to go up and beat the market long term, it will need to keep growing its business. Management is excited with how many users have become paying users in recent months. But the company will need to grow its overall user base as well as become a market beater, in my opinion.
Full Answer
What's happened to Skillz stock?
The company thrived at the pandemic onset, as folks spent a lot more time at home. Mobile games became a popular way to pass the time, and Skillz benefited from the trend. That said, the reversal of that trend has been painful, and the stock has been down 88% in the last year.
What's the upside from Skillz's share price for next year?
8 brokers have issued 12 month target prices for Skillz's stock. Their forecasts range from $17.00 to $34.00. On average, they expect Skillz's share price to reach $25.36 in the next year. This suggests a possible upside of 42.9% from the stock's current price.
How does Skillz make money?
So, its only source of revenue is from players joining games with an entry fee. Skillz then takes a percentage of the payout. For instance, if four individuals enter a contest for $10 each, Skillz might take $5, the developer of the game another $5, and the tournament winner will get $30.
When is Skillz's next earnings release?
View analyst ratings for Skillz or view top-rated stocks. When is Skillz's next earnings date? Skillz is scheduled to release its next quarterly earnings announcement on Wednesday, March 9th 2022. View our earnings forecast for Skillz.
Why did Skillz stock go up?
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. Furthermore, it just launched in India this year, which speaks to the new revenue opportunities alluded to by Bazinet.
Is Skillz stock a good investment?
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.
What is happening with Skillz?
The mobile game company's shares have dropped along with investors' confidence. Shares of Skillz (SKLZ 10.56%) 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 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.
Who owns Skillz stock?
Skillz is not owned by hedge funds. The company's CEO Andrew Paradise is the largest shareholder with 15% of shares outstanding. With 5.6% and 5.3% of the shares outstanding respectively, Accomplice Management LLC and Wildcat Capital Management, LLC are the second and third largest shareholders.
Why is Skillz stock down?
The drop after Q4 earnings continues a larger decline in the gaming company's stock price. Skillz (SKLZ -9.14%) stock is down 15.4% after the company reported earnings on Feb. 24. Investors were not pleased with continued losses on the bottom line.
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.
Is SKLZ a meme stock?
This gaming company was a meme stock, but can it succeed over the long run? Mobile gaming company Skillz (SKLZ -8.51%) has ridden the meme stock roller coaster in 2021 as the number of shares shorted rose to nearly 61 million at the end of August, representing 15% of the shares outstanding.
Is Skillz stock overvalued?
Skillz Inc has a current Real Value of $1.85 per share. The regular price of the company is $1.94. Based on Macroaxis valuation methodology, the company appears to be overvalued....USD 1.94 0.12 6.59%LowerMiddle BandUpper1.471.822.18
Is Skillz fair?
At Skillz, we take player matching and fairness very seriously. Because of this, we structure our matching in a very specific way. Skillz uses algorithms to match players based on ability level and game history to make sure that every tournament is fair. Currently, most matching is done asynchronously.
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.
Should I buy or sell Skillz stock right now?
6 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Skillz in the last year. There are currently 3 hold ratings and 3...
What is Skillz's stock price forecast for 2022?
6 Wall Street analysts have issued 12 month target prices for Skillz's stock. Their forecasts range from $2.10 to $7.50. On average, they anticipat...
How has Skillz's stock performed in 2022?
Skillz's stock was trading at $7.44 at the beginning of the year. Since then, SKLZ shares have decreased by 78.6% and is now trading at $1.59. Vie...
When is Skillz's next earnings date?
Skillz is scheduled to release its next quarterly earnings announcement on Tuesday, August 2nd 2022. View our earnings forecast for Skillz .
How were Skillz's earnings last quarter?
Skillz Inc. (NYSE:SKLZ) released its earnings results on Wednesday, May, 4th. The company reported ($0.37) earnings per share for the quarter, miss...
What guidance has Skillz issued on next quarter's earnings?
Skillz updated its FY 2022 earnings guidance on Monday, May, 9th. The company provided EPS guidance of for the period. The company issued revenue g...
Who are Skillz's key executives?
Skillz's management team includes the following people: Mr. Andrew C. Paradise , Co-Founder, CEO, Pres & Chairman (Age 39, Pay $4.56M) ( LinkedI...
Who are some of Skillz's key competitors?
Some companies that are related to Skillz include LegalZoom.com (LZ) , GoodRx (GDRX) , JOYY (YY) , ironSource (IS) , E2open Parent (ETWO) , U...
What is Skillz's stock symbol?
Skillz trades on the New York Stock Exchange (NYSE) under the ticker symbol "SKLZ."
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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When is Skillz earnings call?
Skillz will be holding an earnings conference call on Tuesday, August 3rd at 5:30 PM Eastern. Interested parties can register for or listen to the call using this link or dial in at 204-525-0658 with passcode "684073".
What is Skillz's FY 2021 earnings?
The company provided EPS guidance of - for the period. The company issued revenue guidance of $375 million-$375 million, compared to the consensus revenue estimate of $369.16 million.
Skillz needs to demonstrate more efficient marketing
The magnitude of benefit from the pandemic was dramatic. From Q4 2019 to Q1 2021, Skillz increased paying monthly active users from 167,000 to 467,000. Note that Skillz cannot yet generate revenue from advertising.
Is Skillz a buy right now?
The sell-off in its stock has Skillz trading at a price-to-sales of 4.8, the lowest in its brief history and down considerably from its peak of over 45. That seems like a reasonable price to pay for a company that has more than tripled revenue from $31 million in Q3 2019 to $102 million in Q3 2021.
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Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community.