Skillz Inc. (SKLZ) stock Plunges to New Low on Missed Earnings and Poor Guidance On February 23, Skillz Inc. (SKLZ) declared its financial results for the quarter and year ended on December 31, 2021. Consequent to this, the stock
Full Answer
Is SKLZ stock worse than other sports betting stocks?
SKLZ stock is faring worse than fuboTV (NYSE: FUBO ), which is also entering the sports betting market. Still, Skillz is not the only company facing selling pressure. DraftKings (NASDAQ: DKNG) is six times larger than Skillz by market capitalization.
What to expect from SKLZ (SKLZ) stock in 2021?
SKLZ will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2021. For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.41 per share and revenue of $369.39 million, which would represent changes of 0% and +60.52%, respectively, from the prior year.
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.
Will Skillz Corporation's book value keep falling?
After registering a net loss of $148 million in the first quarter alone, Skillz will see its book value keep falling. So don't think of this as a value stock. It's a company in a difficult financial position and in need of a turnaround. And if NPD Group's May data signals the start of a longer trend, it could get even harder for Skillz.
Why is SKLZ stock down?
The drop after Q4 earnings continues a larger decline in the gaming company's stock price. Skillz (SKLZ 6.59%) stock is down 15.4% after the company reported earnings on Feb. 24. Investors were not pleased with continued losses on the bottom line.
Is SKLZ losing money?
These companies need to live on what they have. 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 SKLZ stock a good buy?
The financial health and growth prospects of SKLZ, demonstrate its potential to underperform the market. It currently has a Growth Score of D. Recent price changes and earnings estimate revisions indicate this would not be a good stock for momentum investors with a Momentum Score of D.
Is SKLZ a good long term investment?
A Continued Sell-Off Makes SKLZ Stock a Good Long-Term Value | InvestorPlace. New evidence reveals 98% of all cryptos could soon vanish and the remaining 2% will usher in a new era and mint a new wave of millionaires.
Who is buying SKLZ?
The Ark Innovation ETF (NYSEARCA:ARKK) bought 2.1 million shares of Skillz (NYSE:SKLZ) on Oct. 21., according to 24/7 Wall St., the SKLZ stock buy brings the ETF's total holdings of the esports gaming platform company to 13.3 million shares.
Does SKLZ stock rebound?
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. There are several other mobile gaming stocks you can consider.
What is the future of SKLZ?
Skillz Inc (NYSE:SKLZ) The 7 analysts offering 12-month price forecasts for Skillz Inc have a median target of 3.00, with a high estimate of 5.00 and a low estimate of 2.10. The median estimate represents a +80.18% increase from the last price of 1.67.
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 6.43%) 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.
How high will DKNG stock go?
Stock Price Forecast The 27 analysts offering 12-month price forecasts for DraftKings Inc have a median target of 25.00, with a high estimate of 60.00 and a low estimate of 13.00. The median estimate represents a +96.39% increase from the last price of 12.73.
Is SKLZ a Buy Sell or Hold?
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 ARKK hold SKLZ?
ARKK's weighting in SKLZ is 0.13%, making it the ETF's 40th largest holding.
What does SKLZ company do?
operates a mobile games platform that connects players in fair, fun, and meaningful competition. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users worldwide.
Esports Would Lift SKLZ Stock
Chief Executive Officer Andrew Paradise said that the company believed nine years ago that esports is for everyone. Skillz wants to make it as fair and as accessible. It will start by enabling developers of any size to monetize their work.
Platform Development
Skillz will use Aarki’s data with its proprietary data to create a better data value chain. For example, this will lead to better ad impressions for the end-user over time. The company expects user acquisition costs will fall, thanks to Aarki. Paradise gave four to eight quarters for the integration work to pay off.
Alternative Investments
Markets cooled on gaming companies. Activision (NASDAQ: ATVI) is on a downtrend. Zynga (NASDAQ: ZNGA ), another mobile gaming firm, is trading at close to 52-week lows. Both stocks are alternatives to investing in Skillz. Value investors may buy Activision, betting that the company will resolve its internal work culture problems.
Fair Value
In a five-year discounted cash flow EBITDA exit model, readers may assume a generous terminal EBITDA multiple of 40.1 times. This implies a fair value of $9.59:
Risks
Bearish investors have a substantial short float of over 20% against SKLZ stock. With the stock falling steadily, markets are betting that Q3 results will disappoint investors. Skillz will need to exceed investor expectations to overcome bears. It must also report strong monthly active users from titles like Trivia Crack and Big Buck Hunter.
Your Takeaway on SKLZ Stock
Bears are in full control with SKLZ stock. Every rally is short-lived and follows with steady selling. The firm is unlikely to post impressive quarterly results next month. Even if it does, risks are high that the company will report challenges in its acquisitions. It may face integration delays or costs cuts that are behind schedule.
Recent Financial Results
On March 11, 2021, SKLZ announced financial results for the fourth quarter and full-year ended December 31, 2020, and also provided 2021 revenue guidance.
Q4 Highlights
SKLZ revenue for the fourth quarter was $68 million compared with $35 million to the same quarter in 2019.
About the SKLZ
Skillz is the leading online mobile games platform that connects players in fair, fun, and meaningful competition. SKLZ was founded in 2012 and its headquarter is in San Francisco USA and backed by leading venture capitalists. SKLZ platform is integrated into several iOS and Android games.
Conclusion
SKLZ revenue is continuously growing in the last twenty quarters. The company’s recent financial results topped the analysts’ estimates. The present negativity seems to be just temporary and it seems that SKNZ will pull itself back.
Serious Risks with SKLZ Stock
The senior notes will cost Skillz an interest rate of 10.25%. This is a red flag. The leading mobile game platform business does not make enough sales to offset costs.
Aarki Acquisition
In June, Skillz announced its plan to buy San Francisco-based Aarki to form an integrated esports advertising platform .
Opportunity
Trivia Crack is the No. 1 trivia game in the world with 40 million monthly active users. Skillz will offer a live tournament-style play on its platform. Speculators are not so bullish on mobile gaming firms based on active user count only. The stock tried to rally in the latter half of 2020 only to trend lower.
Fair Value of SKLZ Stock
Wall Street analysts have a price target ranging from $12 to $25, according to Tipranks. At an average price target of $18.60, investors should not assume analysts have a high conviction on the implied 150% upside. Most analysts set the price target two months ago or longer.
Too Many Promises
Momentum investors gave up on Skillz in recent weeks. They sold the stock to realize losses to offset gains in other holdings. Skillz is investing too heavily to chase growth, creating quarterly losses. Still, the firm has strong MAUs.
Esports Would Lift SKLZ Stock
Platform Development
- Skillz will use Aarki’s data with its proprietary data to create a better data value chain. For example, this will lead to better ad impressions for the end-user over time. The company expects user acquisition costs will fall, thanks to Aarki. Paradise gave four to eight quarters for the integration work to pay off. After the stock fell, investors are expressing skepticism over that alr…
Alternative Investments
- Markets cooled on gaming companies. Activision (NASDAQ:ATVI) is on a downtrend. Zynga (NASDAQ:ZNGA), another mobile gaming firm, is trading at close to 52-week lows. Both stocks are alternatives to investing in Skillz. Value investors may buy Activision, betting that the company will resolve its internal work culture problems. Zynga’s expensive acquisitions are spooking inve…
Fair Value
- In a five-year discounted cash flow EBITDA exit model, readers may assume a generous terminal EBITDA multiple of 40.1 times. This implies a fair value of $9.59: Skillz will need to continue reporting revenue growing at over 50% on average to justify that fair value.
Risks
- Bearish investors have a substantial short float of over 20% against SKLZ stock. With the stock falling steadily, markets are betting that Q3 results will disappoint investors. Skillz will need to exceed investor expectations to overcome bears. It must also report strong monthly active users from titles like Trivia Crack and Big Buck Hunter. The la...
Your Takeaway on SKLZ Stock
- Bears are in full control with SKLZ stock. Every rally is short-lived and follows with steady selling. The firm is unlikely to post impressive quarterly results next month. Even if it does, risks are high that the company will report challenges in its acquisitions. It may face integration delays or costs cuts that are behind schedule. As the technology market turns bearish, Skillz cannot afford to di…
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