Skillz (SKLZ) Stock Forecast & Price Target

Skillz Inc has demonstrated a positive turnaround in its paid monthly active users, showing a year-over-year growth of 2.5% for the first time since the first quarter of 2022, attributed to effective marketing strategies aimed at re-engaging users. Furthermore, projections indicate an anticipated acceleration in growth, with an estimated increase of 6.6% year-over-year in user engagement for the second quarter, as re-engaged users begin to increase their spending. The company is also expected to scale its expenditures to drive further growth, primarily focusing on user acquisition strategies that could enhance its market presence in the competitive mobile gaming sector.

Skillz Inc. has experienced a decline in total monthly active users, with an estimated year-over-year decrease of 2.1%, indicating a potential slowdown in user engagement. Despite efforts to reduce operating cash burn, the company's revenue generation primarily hinges on its Skillz segment, which faces challenges due to the diminishing user base. The combination of declining user metrics and reliance on a single segment for the majority of revenue may raise concerns about the company's long-term growth prospects.