Skillz (SKLZ) Stock Forecast & Price Target

Skillz Inc has demonstrated a return to growth in its paid monthly active users, achieving a 2.5% year-over-year increase for the first time since the first quarter of 2022, attributed to enhanced marketing efforts aimed at re-engaging previous users. The company anticipates further growth acceleration in the second quarter, estimating a 6.6% year-over-year increase as re-engaged user spending continues to improve. With plans to increase spending on user acquisition, Skillz is positioned to drive further expansion and enhance its revenue generation capabilities.

Skillz Inc. is facing challenges with a reported year-over-year decline in total monthly active users of approximately 2.1%, which could jeopardize future revenue growth. While the company is actively working to reduce its operating cash burn, this measure may not be sufficient to offset the negative impact of user attrition on its core Skillz segment, which is the primary source of revenue. The reliance on a diminishing user base and the need for continued cost-cutting efforts reflect fundamental weaknesses that contribute to a negative outlook for Skillz's stock.