Skillz stock increases after Cathie Wood and ARK Invest purchase shares

Cathie Wood; Founder, CEO and CIO of ARK Invest (NYSEARCA: ARKK) and one of its ETFs; ARK Next Generation Internet ETF (NYSEARCA: ARKW) bought 215,000 shares of Skillz (NYSE: SKLZ) this week.

Skillz is a mobile gaming platform that allows players to connect through competitions and tournaments. It gives franchises the opportunity to connect their players through a new way of playing. They are designed for small and medium developers so that those companies can generate income and build franchises without having to resort to selling to a larger corporation or depending on the sale of advertising space. Tournament fees are paid by consumers, with the majority effectively going to developers with Skillz retaining 14%.

In mid-December, just before the calendar changed, Skillz went public through a special purpose procurement company (SPAC) called Flying Eagle Acquisition Corporation. Trading on the New York Stock Exchange under the symbol “SKLZ,” it made a strong start in its public domain.

So why is it so important that Cathie Wood and ARK Next Gen bought Skillz for an amount equal to only 0.07% of ARK’s holdings? Well, the proof is right in front of us: Skillz (NYSE: SKLZ) shares are up over 20% since they went public, and whenever ARK and Cathie Wood buy shares of a stock, investors tend to follow them, and they continue to contribute to the actions. to win.

Currently, Skillz (NYSE: SKLZ) runs around 1,700 tournaments per second and has an audience of approximately 2.7 million users per month. With more than 10 million developers and 2.7 billion players worldwide in the mobile gaming industry, Skillz is poised to continue growing. The mobile games market is the largest in the industry, reaching an estimated revenue of US $ 86 billion in 2020. It has a lower barrier to entry compared to the other markets, and Skillz perfectly satisfies the ease of that both for gamers as well as developers. .

Revenue grew more than 90% over the past year and, looking to 2021, Skillz has $ 250 million in cash and no debt. They estimate that by 2025 the mobile gaming market will reach a value of $ 150 billion, roughly double what it is now. With major investors like Cathie Wood buying in, Skillz looks like a solid company for the future.

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