Why Skillz Rallied Today
On a down day for most tech stocks, mobile esports platform Skillz (NYSE: SKLZ) was rising as much as 11.5% before settling into a 4.6% gain as of 12:03 p.m. ET.
Skillz reported earnings last night. While the numbers looked ugly in and of themselves, they were actually a little better than expected. Additionally, Skillz repurchased some of its high-yield debt at a big discount. Given how beaten-down shares are, the stock rose on the news.
In the third quarter, Skillz reported a revenue decline of 41% to $60.3 million. That wasn't great, but was a bit higher than analyst expectations. Encouragingly, adjusted earnings before taxes, interest, depreciation, and amortization (EBITDA) losses actually improved by $16 million to a quarterly loss of just -$15.4 million.
Source Fool.com
