Skillz (SKLZ) Stock Forecast & Price Target

Skillz Inc has experienced a positive turnaround with paid monthly active users returning to growth, recording a 2.5% year-over-year increase last quarter, marking the first such growth since the first quarter of 2022. Projections for the second quarter suggest an even stronger performance, with expected growth of approximately 6.6% year-over-year, driven by successful re-engagement strategies and increased spending from users. The company's focus on scaling marketing efforts and user acquisition positions it strategically for continued revenue expansion, primarily from its dominant Skillz segment.

Skillz Inc. is experiencing a decline in total monthly active users, with an estimated decrease of 2.1% year-over-year, which could signal diminishing engagement on its platform. Although the company is taking measures to reduce its operating cash burn, the underlying user decline may negatively impact future revenue potential, particularly since the majority of its earnings are generated from the Skillz segment. Additionally, the reliance on a specific geographic market, predominantly the United States, may pose further risks if user retention and growth do not improve.