Skillz Stock (NYSE:SKLZ)
Investors in Skillz (NYSE:SKLZ) seem to be having a rough time recently. Skillz stock dropped sharply this morning for no apparent reason. Instead, Skillz investors are becoming more worried that the Federal Reserve will keep raising interest rates, which would hurt the U.S. economy.
Accordingly, as of 11:00 AM ET, Skillz stock had dropped 8.4%.
What’s the Reason?
The following two days will be necessary for investors. The Consumer Price Index report will be announced on Thursday, and September retail sales data will be revealed on Friday. Skillz stock owners are concerned that the statistics would reveal a declining economy, which might pressure the Skillz (NYSE:SKLZ) gaming industry, and investors are generally pessimistic about the economy’s status.
Second quarter (June 30) sales for Skillz were down 18% to $73 million, and the firm is still losing money.
Skillz stock investors are worried that the Federal Reserve will keep raising interest rates aggressively to combat inflation and that these rate rises will ultimately lead to a severe slowdown in economic activity.
Investors in Skillz stock may be responding to both economic uncertainties and to remarks made by Barclays analyst Mario Lu on Roblox.
According to Lu, a spike in gaming due to COVID-related lockdowns and social alienation helped Roblox. Still, the platform is now highly saturated, “suggesting both user and bookings growth may be challenging going ahead.”
Investors in Skillz stock may be taking Lu’s statements into account, with the possibility that they’re preparing for the firm to face challenges similar to those he’s
What Should You Do Now
The third-quarter results for Skillz (NYSE:SKLZ), which are expected to be disclosed on or around November 2, will provide Skillz stock investors with a clearer view of the company’s financial health.
The share price of Skillz, a mobile gaming platform, may take a hit soon as investors fret about a further economic recession.
Featured Image- Unsplash @ Erik Mclean
Author Shariq Khan 
