Skillz: User Growth Problems
Once promising (SKLZ) has again shown investors the problems with buying into too much hype. The skill-based gaming company has impressive revenue growth, but the lack of cost containment questions the LTV of gamers on the platform. My investment thesis remains Bearish on the stock despite the dip to the lows around $13.
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Update - August 6
Skillz closing below $12 sets up more weakness next week. A company can't keep outspending revenue forever without repercussions.