Why Skillz Stock Was Up Big This Week
When a stock like mobile-gaming platform Skillz (NYSE: SKLZ) is heavily shorted, a positive catalyst can send shares markedly higher in a hurry. And indeed, that's what happened to Skillz this week. It's acquiring an advertising-technology company, and that's not something short-sellers seem to have anticipated. As of market close on Thursday, Skillz stock is up more than 23% for the week.
On Wednesday, Skillz announced its $150 million acquisition of demand-side platform (DSP) Aarki. For clarity, supply side ad-tech companies work with publishers to fill their advertising slots for the highest price. DSPs are on the other side of the ad-slot auction, trying to get advertisers the most coverage for their budgets. Game developers build on Skillz's platform in hopes of reaching the broadest audience possible. And Skillz relies on DSPs to bring in enough users to meet game developers' expectations.
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Source Fool.com
