Down 60%, Is Skillz a Buy Right Now?
In this video I will talk about Skillz (NYSE: SKLZ) and whether it is worth the hype. The stock is down 60% since its highs back in February. Skillz is a multiplayer tournament platform that lets you compete in mobile games with other people around the world for either real cash or virtual currency.
It has quite a lot of competition from other casino-type games (it offers other types of games as well). Right now I think it's focusing on quantity, not quality.
The company reported great first-quarter earnings. Revenue grew to $83.7 million, up 92% year over year. Gross profit grew to $79.4 million, up 95% YOY. Gross margin was 95%, 100 basis points higher than the prior year. It has $613 million in cash and no debt, but all that growth does come at a cost. The net loss was $53.6 million, compared with $15.5 million in the prior year.
Source Fool.com
