Why Skillz Stock Fell 6% Today
In an ongoing rout of small, fast-growing, but loss-generating companies, Skillz (NYSE: SKLZ) stock was down 6% today as of market close. There was no news to cause the decline, just continued poor investor sentiment that has been hurting Skillz in the last month or so since the omicron variant first showed up on the scene. With just days until the new year, shares have now lost some 63% of their value in 2021.
Image source: Getty Images.
Skillz is undeniably a high-octane business operating in the young esports industry. Revenue grew 70% year over year in Q3 2021 to $102 million. However, the market has turned against companies that operate at a loss, even if the strategy is to do so intentionally to maximize growth now in lieu of bigger profits later. Free cash flow was negative $132 million over the last trailing-12-month period.
Source Fool.com
