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Skillz (SKLZ) Surges 10.1%: Is This an Indication of Further Gains?

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Skillz Inc. (SKLZ - Free Report) shares soared 10.1% in the last trading session to close at $7.73. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.7% gain over the past four weeks.

Skillz’s recent stock price rally likely reflects growing investor confidence in the company’s strategic turnaround efforts and renewed operational focus. The launch of its Accelerator program has positioned Skillz to expand beyond casual games and tap into emerging genres, signaling a more ambitious push into the broader competitive gaming landscape. This initiative has already attracted strong interest from developers, reinforcing Skillz’s role as a platform for innovation in skill-based mobile gaming. At the same time, the company’s efforts to strengthen internal operations and streamline product development and marketing are laying the groundwork for more consistent execution. As Skillz sharpens its value proposition and broadens its market reach, investors appear to be responding to its renewed sense of direction and long-term growth potential.

This company is expected to post quarterly loss of $1.34 per share in its upcoming report, which represents a year-over-year change of -135.1%. Revenues are expected to be $22.8 million, down 9.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Skillz, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SKLZ going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Skillz is a member of the Zacks Gaming industry. One other stock in the same industry, Roblox (RBLX - Free Report) , finished the last trading session 3.5% lower at $120.2. RBLX has returned 20.3% over the past month.

Roblox's consensus EPS estimate for the upcoming report has changed +0.8% over the past month to -$0.36. Compared to the company's year-ago EPS, this represents a change of -12.5%. Roblox currently boasts a Zacks Rank of #2 (Buy).


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