How Likely is Skillz to Need More Cash in 2022?
Investors have kicked mobile gaming competition company Skillz (NYSE: SKLZ) to the curb; shares are down more than 80% over the past year, and even more if you went back to the company's high of $46 early last year.
Skillz seems to be having a hard time showing a clear path to profitability, which isn't good in a market that's become tougher on growth stocks. Whether or not Skillz can win over the long term remains to be seen, but here are three concerns to consider before buying shares.
Skillz emphasized in its 2021 Q4 earnings and again at its 2022 investor event that it's seeking "profitable growth" after spending so heavily on marketing over the past couple of years. While the effort is appreciated, it could be too little, too late. Skillz has dug itself a financial hole, and share price struggles only put management further into the weeds. Consider that Skillz's operating losses, the cash it burned from running the company, were $181 million in 2021.
Source Fool.com
