SKLZ Alert: Why Is Skillz Stock Dropping Today?

Skillz (NYSE:SKLZ) stock is taking a beating on Wednesday after the stock loved by Reddit traders reported results for the first quarter of 2021.

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So why are investors unhappy with SKLZ stock today? Let’s dive into the details below.

  • The company’s earnings report starts off with losses per share of 15 cents.
  • Unfortunately for SKLZ stock, that was worse than Wall Street’s estimate of -10 cents.
  • It’s also wider than the losses per share of 6 cents from the same period of the year prior.
  • Adding to that, net loss for the quarter comes in at $53.59 million.
  • That’s a much wider net loss than the $15.5 million reported in the first quarter of 2020.
  • On the bright side, Skillz’s revenue for the first quarter of 2021 came in at $83.68 million.
  • That above analysts’ revenue estimate of $78.58 million for the quarter.
  • It’s also an increase over the company’s revenue of $43.56 million from the same time last year.
  • Another highlight is Skillz increasing its outlook for 2021 in this most recent earnings report.
  • This has it expecting revenue for the quarter to come in at $375 million.
  • If that holds true, it will have the company beating out Wall Street’s 2021 revenue estimate of $369.16 million.
  • Today’s earnings news has SKLZ seeing a boost in trading.
  • As of this writing, more than 16.5 million shares of the stock have changed hands.
  • This has the company on target to surpass its daily average trading volume of 19.1 million shares.

Andrew Paradise, founder and CEO of Skillz, said this about the earnings news hitting SKLZ stock.

“We are proud to report record-breaking first quarter results, giving us 21 consecutive quarters of revenue growth. Our performance and strong growth trajectory gave us the confidence to increase investment in Q1 and raise full year revenue guidance to $375 million.”

SKLZ stock was down 4.3% as of noon Wednesday.

There’s other recent earnings news that investors need to be aware of.

We’re into earnings season and that means results are coming in from quite a few companies. Some to take note of are Activision Blizzard (NASDAQ:ATVI), Clover Health Investments (NASDAQ:CLOV), and Caterpillar (NYSE:CAT). Investors can learn more at the links below.

More Earnings News

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


Article printed from InvestorPlace Media, https://investorplace.com/2021/05/sklz-alert-why-is-skillz-stock-dropping-today/.

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