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Skillz (SKLZ) Surges 10.1%: Is This an Indication of Further Gains?
ZACKSยท 2025-07-23 14:46
Company Overview - Skillz Inc. (SKLZ) shares increased by 10.1% to close at $7.73, with trading volume significantly higher than usual, compared to a 5.7% gain over the past four weeks [1] Strategic Initiatives - The recent stock price rally is attributed to growing investor confidence in Skillz's strategic turnaround efforts and operational focus, particularly the launch of its Accelerator program aimed at expanding beyond casual games into emerging genres [2] - The Accelerator program has garnered strong interest from developers, enhancing Skillz's position as an innovative platform in skill-based mobile gaming [2] - Skillz is also focusing on strengthening internal operations and streamlining product development and marketing, which is expected to lead to more consistent execution and broaden its market reach [2] Financial Expectations - The company is projected to report a quarterly loss of $1.34 per share, reflecting a year-over-year decline of 135.1%, with expected revenues of $22.8 million, down 9.9% from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Skillz is part of the Zacks Gaming industry, where Roblox (RBLX) experienced a 3.5% decline in the last trading session, despite a 20.3% return over the past month [4] - Roblox's consensus EPS estimate has changed by +0.8% to -$0.36, representing a year-over-year change of -12.5%, and it currently holds a Zacks Rank of 2 (Buy) [5]