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SKLZ Stock: 6 Takeaways From Skillz CEO’s Open Letter Today

Today, the meme stock trade appears to be losing some steam. Investors in companies with heavy retail investor interest are down. Accordingly, investors in Skillz (NYSE:SKLZ) and SKLZ stock may not be surprised to see a 5% decline today.

gamers sitting at computer desks wearing headsets and playing video games

Source: NYCStock / Shutterstock.com

After all, investors may have noticed a relative stagnation among the meme stock group in recent days. Today’s decline has continued a relatively bearish trend for these stocks this past week. Retail investors appear to be recycling interest rapidly. Accordingly, near-term sentiment appears to be a bigger driver than ever today for this group.

That said, the company’s CEO has raised some interesting points in a recent open letter to shareholders.

Let’s dive into what that letter said, and why investors may want to reconsider this stock.

Open Letter Highlights Bullish Thesis on SKLZ Stock

  • Andrew Paradise, CEO of Skillz, recently penned an open letter on Seeking Alpha in which he highlighted the growth potential of its e-gaming business.
  • Accordingly, Mr. Paradise noted the 23% CAGR of Skillz as an indicator of this growth. Indeed, he notes mobile has become the fastest-growing segment of the gaming space.
  • Further, Skillz is well-positioned to capture market share in a rapidly expanding sector. The CEO notes the mobile gaming market is expected to grow to $161 billion by 2025, from just $86 billion last year.

  • Thus, the company’s 84% year-over-year growth rate projected for Q1 is something he’d like investors to focus on.
  • Skillz expects to ramp up its Android footprint dramatically. Last year, Android made up 14% of revenues. Furthermore, Mr. Paradise noted this segment is growing 2 times faster than iOS.
  • Additionally, Skillz has its sights set on global growth. The letter noted the international market for mobile gaming is 4 times larger than the domestic market.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2021/04/sklz-stock-6-takeaways-from-skillz-ceos-open-letter-today/.

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