{"id":171203,"date":"2021-04-20T12:18:27","date_gmt":"2021-04-20T19:18:27","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=171203"},"modified":"2021-06-23T01:42:16","modified_gmt":"2021-06-23T08:42:16","slug":"skillz-stock-tumbles-on-bearish-commentary-from-eagle-eye-research","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/skillz-stock-tumbles-on-bearish-commentary-from-eagle-eye-research\/","title":{"rendered":"Skillz Stock Slump Reaches Epic Proportion as Another Bear Report Emerges"},"content":{"rendered":"

Skillz (NYSE:SKLZ) stock is getting pounded again today after another bearish research report surfaced on social media \u2013 this one alleging the company is using accounting gimmickry to overstate the health and size of its business.<\/p>\n

\"Skillz
Skillz CEO Andrew Paradise. The stock is getting slammed by another bearish research report. (Image: Flipboard)<\/em><\/figcaption><\/figure>\n

In late trading, shares of the mobile games developer are off more than 11 percent, extending a slide that’s seen the name shed a staggering 47.25 percent over the past month. In a piece posted to Twitter yesterday, a user known as Eagle Eye Research<\/a> claimed cash revenue represented 29 percent to 47 percent of Skillz’s generally accepted accounting principles (GAAP) sales over the past three years, promising to \u201cdeconstruct this accounting sleight-of-hand over the next few days.\u201d<\/p>\n

We believe the company likely recognizes substantial non-cash revenue, and believe that cash revenue may be less than half of GAAP revenue,\u201d said Eagle Eye in its report. \u201cThe company has never turned a profit and we doubt it ever will.\u201d<\/p><\/blockquote>\n

This is the third time in barely more than a month that bearish research surfaced on Skillz, which has been a stand-alone public entity just five months following a merger<\/a> with a special purpose acquisition company (SPAC).<\/p>\n

Tumultuous Times for Skillz Stock<\/h2>\n

Wolfpack Research got the bear attack on Skillz rolling last month, saying the \u201cgrowth projections SKLZ and its SPAC sponsor continue to present to investors are entirely unrealistic.\u201d<\/p>\n

That was followed up by a 22-page missive from a Twitter account known as @Restrinct, who noted Skillz faces risks via a ban from the Google Play store<\/a>, and that the company earns just 80 cents worth of growth for every $1 it spends on advertising.<\/p>\n

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The San Francisco-based company said those reports are littered with inaccuracies, but hasn’t publicly elaborated beyond that. In the meantime, Skillz stock is 72 percent below its high and the past month has been particularly brutal with the name faltering despite decent revenue guidance<\/a> issued in late March.<\/p>\n<\/div>\n

A massive secondary equity sale revealed last month didn’t help matters. Skillz bears pointed out CEO Andrew Paradise sold some of his shares into that offering — a move being construed as a negative sign by those lining up against the stock.<\/p>\n

For Eagle Eye’s part, that researcher says Skillz trades at valuation comparable to a \u201cdisruptive\u201d cloud computing firm when it reality it’s \u201ca subscale mobile game publisher<\/a> in a competitive industry.\u201d The operator of the Twitter account forecasts 80 percent downside for Skillz stock from current levels. Based on Monday’s close at $14.11, if that estimate is accurate, Skillz would trade below $3.<\/strong><\/p>\n

Internet Defending Skillz<\/h2>\n

In today’s era of highly empowered retail investors<\/a>, some are attempting to leverage social media to support Skillz stock. Critics of the Eagle Eye report aren’t taking it idly, with one Twitter user saying the research is no more than assistance for hedge funds that are short the stock. Another slammed the newness of the Eagle Eye Twitter handle.<\/p>\n

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This is how they STEAL shares 4mm RETAIL, he Opened twitter account TODAY<\/p>\n

BURN THESE SHORTS, IF HE IS TELLING TRUTH DO YOU THINK MORGAN STANLEY & @ARKInvest<\/a> @CathieDWood<\/a> Didn’t do their FULL Due diligence on this?<\/p>\n

Think & BE STRONG BUY THE Dip.
\nEducation & Fitness Coming Soon..<\/p>\n

\u2014 🇺🇸GoodHeart🇺🇸 (@StockTradesUSA) April 19, 2021<\/a><\/p><\/blockquote>\n