Why Skillz Shares Soared Last Month
Shares of Skillz (NYSE: SKLZ) rose 27.8% in June 2021, according to data from S&P Global Market Intelligence. The company behind a mobile game platform that lets players win cash prizes was primed for a big jump due to soaring short-seller interest in the stock. Skillz pulled the trigger with the acquisition of a digital advertising specialist.
Roughly 25% of Skillz' shares were sold short in mid-May, which opened the possibility of a game-changing short squeeze. Any good news reported during a time of intense short-seller interest might force the bears to close their negative investment positions, thus driving stock prices much higher in a hurry. So when Skillz announced the $150 million buyout of demand-side advertising expert Aarki, the fuse was lit and Skillz shares soared. The stock closed 26.8% higher that day, having surged as much as 35% higher earlier in the trading session.
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Source Fool.com
