What Happened:
Shares of mobile game developer Skillz (NYSE:SKLZ) opened the day down 5.94% in the morning session after the company delivered disappointing results for both revenue and earnings in the latest quarter. In addition, its paying monthly active users dropped to 235 thousand, down 61% compared to the previous year. The shares have since revered the loss and the stock is now up 10.28% on the news the Commerce Department reported that the personal consumption expenditures price index, a measure of inflation that the Fed monitors closely, rose by 5% in February compared to the same period last year, below expectations. This demonstrates that inflation is softening and may mean to the Fed that there is less urgency to hike rates further.
What is the market telling us:
Skillz's shares are very volatile and over the last year have had 112 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move was about 22 hours ago, when the company gained -5.94% on the news that the company delivered disappointing results for both revenue and earnings in the latest quarter. In addition, its paying monthly active users dropped to 235 thousand, down 61% compared to the previous year.
Skillz is up 17.2% since the beginning of the year, but at $0.595 per share it is still trading 82.1% below its 52-week high of $3.33 from April 2022. Investors who bought $1,000 worth of Skillz's shares at the IPO in April 2020 would now be looking at an investment worth $60.38.
Is now the time to buy Skillz? Access our full analysis of the earnings results here, it's free.