1 Growth Stock Down 89% That Could Soar, According to Wall Street
For a long time, several high-growth companies have opted to prioritize market share over profitability. This means that many of these companies take a long time to reach breakeven and achieve operating leverage. Some, however, end up destroying capital, and some even go bankrupt. To create wealth, retail investors must learn to separate the wheat from the chaff -- growth companies that create long-term value from those that destroy shareholder value.
Shares of mobile gaming and esports platform company Skillz (NYSE: SKLZ) are currently down by over 89% from their all-time high of $46.30 on February 5, 2021. The company is now seen as a high-risk speculative investment, especially because of portfolio concentration, rising competition, and huge losses. The weak sentiment surrounding high-growth stocks in the face of increasing interest rates also did not help the company.
However, things may now be on the cusp of change, considering that since November 2021, four insiders, including the company's CEO Andrew Paradise, have purchased close to $7 million of the company's shares. With insiders having a much better view of the company's goals and strategies, it may be a signal for investors to consider evaluating this highly corrected stock as an investment opportunity.
Source Fool.com