Skillz Inc.

Analysis for Ticker: SKLZ

Skillz Inc operates a mobile gaming ecosystem where developers use a special software kit to host money tournaments for games like Solitaire Cube and 21 Blitz. On the outside, it looks like a tech company, but on the inside, it is a furnace that has burned an accumulated deficit of over 1.000,0$ million of other people's money. Between 2021 and 2024, the value of the business for a regular person fell by 99%, meaning a hundred dollars became worth just 1,11$. This happened because the people running the business are paying themselves millions in free shares while the actual gaming business is falling apart. It is like a lemonade stand that pays kids to drink the lemonade so the owner can tell everyone business is great, even though the lemon jar is empty. The trouble began years ago when the losses started piling up. In 2022, the company lost 438,0$ million. While the money was disappearing, the chief executive officer, Andrew Paradise, who owns 87,02% of the voting power, took a pay package worth 26,4$ million. By the middle of 2023, the stock price was so low that the company was going to be kicked off the stock market. To hide this, they did a reverse stock split on 23/06/2023, where they crunched twenty shares into one to make the price look twenty times bigger than it really was.