Skillz Management Just Did the One Thing It Shouldn't Do

Since peaking in early 2021, shares of mobile-gaming platform company Skillz (NYSE: SKLZ) have plummeted by a staggering 92%. However, as atrocious as that result has been, buy-and-hold investors understand that it's more important to monitor the underlying performance of the business rather than fixating on the stock price.

When it comes to Skillz's underlying business performance, it's come up short in various areas. The company's one redeeming attribute to this point was overachieving in regards to revenue growth. However, that's no longer the case and a recent guidance shift from management is perhaps the most alarming development to date.

Skillz stock officially started trading in December 2020. Since then, it's reported quarterly financial results five times. During the first four reports, management habitually beat revenue expectations and raised its forward guidance.

Source Fool.com