Skillz: Costing Too Much To Acquire Customers
- Skillz beats Q1 revenue targets and guides up revenues for 2021.
- The company spent nearly $100 million on sales and marketing without meaningful growth in the MAUs for Q1.
- The stock is far too expensive at 20x '21 sales targets when the user base isn't growing despite wild UA marketing spending.
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Update - August 1
As investors were warned many times, Skillz was far over valued above at just $15. The gaming company spent far too much money on UA for the lack of MAU growth in the last quarter. The stock is now testing previous lows around $13, though Skillz remains a highly expensive stock.
The company reports after the close on August 3 and needs a good report to turn around sentiment. The key focus is user growth and related UA spending.
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