Shares of Skillz (SKLZ) have declined 33.5% in price over the past three months due to investors’ pessimism surrounding a lawsuit it is facing, among other factors. Nevertheless, the company reported its 22nd consecutive quarter of growth in its latest quarter. So, let’s find out if it is wise to buy SKLZ shares now on their dip in price.Mobile games platform provider Skillz Inc. (SKLZ) connects players in fair, fun, and meaningful competition. The San Francisco company made its stock market debut on December 17, 2020, merging with special purpose acquisition company (SPAC) Flying Eagle Acquisition Corp. On August 2, 2021, SKLZ formed a strategic partnership with Exit Games. However, SKLZ is currently being investigated for corporate governance failures, possible fiduciary duties breaches, and other law violations.
Consequently, the stock has lost 33.5% in price over the past three months and 31.1% over the past month, to close Friday’s trading session at $10.50. Moreover, it has declined 26.4% since reporting lackluster second-quarter earnings results on August 3 and hit its 52-week low of $10.06 on August 19.
Also, SKLZ’s near-term prospects look bleak since a pandemic-driven surge in demand for mobile games could decline in the coming months.