2024-07-05 06:39:27 ET
Summary
- Skillz is running out of time to turn things around.
- Despite its cash reserves, I see SKLZ as a sinking ship that won't reach profitability as management claims.
- The revenue growth rates are uninspiring, making this an unwise place to invest capital.
- Short-squeeze prospects fade.
Investment Thesis
Skillz ( SKLZ ) is a business that, for a long time, I hesitated assigning with a sell rating, as I was concerned that the combination of its high short ratio together with its very high cash balance compared with its market cap could lead to short squeezes....
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Skillz: Tick-Tock, Tick-Tock, Goes This Clock (Downgrade)