Earnings season is one of four times throughout the year where investors get a glimpse behind the curtain to see how a company is performing. When Skillz (NYSE: SKLZ) , Cloudflare (NYSE: NET) , and Activision Blizzard (NASDAQ: ATVI) report the first week of November, investors will be watching closely. Each has a unique situations to analyze.
Skillz closed at $14.21 the day before it reported its second quarter earnings on Aug. 3. At the time of this writing it trades just above $10. While that decrease doesn't seem like much in terms of dollars, a near 40% decline does. What's happened to this stock that traded around $40 in February?
Its business model turns the traditional mobile gaming approach on its head. Instead of pestering its users with ads, it generates revenue by facilitating an environment where users compete for monetary prizes. Skillz takes a small cut in the process to fund its business. Skillz also provides tools to ensure proper matchmaking and fraud reduction. Most importantly, Skillz does not develop games; it provides the platform to create and run them.
For further details see:
3 Stocks to Watch This Earnings Season