3 reasons why SKLZ is a solid long-term investment stock

In today’s video I watch Skillz‘s (NYSE: SKLZ) recent movements in stock prices and why long-term investors should ignore volatility.

Three reasons why long-term Skillz investors should ignore the noise:

  1. International expansion: Skillz is on track to launch in India later this year. Management estimates that the expansion will increase its addressable market by 65%. At present, international turnover represents less than 10% of Skillz turnover.
  2. Expansion to other markets: Skillz is exploring opportunities beyond gaming that could benefit the competitive platform, such as fitness and education.
  3. Careful direction from management: The forecast released by Skillz for the first quarter of 2021 shows growth of 84% year-over-year and 18% quarter-over-quarter. These forecasts do not take into account the revenue generated by potential new games, which can generate a considerable increase in future earnings reports.

Investors should note that Skillz will be a very volatile security and should be prepared for huge price fluctuations.

Click on the video below for my full thoughts.

* The stock prices used were the mid-day prices of April 21, 2021. The video was published on April 21, 2021.

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Jose najarro owns shares of Skillz Inc. The Motley Fool owns shares and recommends Skillz Inc. The Motley Fool has a disclosure policy. Jose is a subsidiary of The Motley Fool and may be remunerated for promoting its services. If you choose to subscribe via his link, he will earn extra money to support his channel. His opinions remain his own and are unaffected by The Motley Fool.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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