What Happened?
Shares of mobile game developer Skillz (NYSE: SKLZ) fell 1.9% in the afternoon session after the company reported third-quarter results that missed analyst expectations for revenue and earnings.
The company posted revenue of $27.4 million, which, while up 11% from the previous year, fell short of the $29.1 million analysts had predicted. The loss per share of $1.14 also missed the consensus estimate. Furthermore, the company's adjusted EBITDA loss came in at $11.8 million, significantly wider than the $7.5 million loss that was expected. Adding to investor concerns, Skillz disclosed it was still working to complete its financial statements for previous periods and faced compliance issues with the New York Stock Exchange. The company noted it must become current with its SEC filings by a mid-December deadline to maintain its stock exchange listing.
The shares closed the day at $6.24, down 2% from previous close.
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What Is The Market Telling Us
Skillz’s shares are extremely volatile and have had 47 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 28 days ago when the stock dropped 5.1% on the news that President Trump threatened to impose "massive" new tariffs on Chinese imports, reigniting trade war fears. The unexpected announcement shattered a monthslong calm on Wall Street, sending major indices tumbling. The S&P 500 dropped around 1.3%, while the tech-rich Nasdaq Composite fell 1.7%. Investors reacted by selling off stocks, particularly in the technology and retail sectors, amid concerns that escalating trade tensions could disrupt global supply chains and increase costs for companies. The sell-off marked a significant reversal from the morning's slight gains, highlighting the market's sensitivity to geopolitical trade developments.
Skillz is up 16.3% since the beginning of the year, but at $6.20 per share, it is still trading 31.8% below its 52-week high of $9.09 from August 2025. Investors who bought $1,000 worth of Skillz’s shares 5 years ago would now be looking at an investment worth $25.62.
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