3 reasons why SKLZ is a solid long-term investment


In today’s video I watch Skillit’s (SKLZ 13.11% ) recent stock price movements and explain why long-term investors should ignore volatility.

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

  1. International expansion: Skillz is set to launch in India later this year. Management estimates that the expansion will increase its addressable market by 65%. Currently, international revenue represents less than 10% of Skillz revenue.
  2. Expansion to other markets: Skillz explores opportunities beyond gaming that could benefit from the competition platform, such as fitness and education.
  3. Management’s prudent advice: Forecasts published by Skillz for the first quarter of 2021 show growth of 84% year-over-year and 18% quarter-over-quarter. These forecasts do not take into account revenue from potential new games, which can generate significant gains in future earnings reports.

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

Click the video below for my full thoughts.

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

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.

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