Skillz (SKLZ) Stock Forecast & Price Target

Skillz Inc has demonstrated a positive trend with a return to growth in paid monthly active users, showing a 2.5% year-over-year increase for the first time since the first quarter of 2022, attributed to successful marketing efforts aimed at re-engaging lost users. Furthermore, projections suggest an expected acceleration in user growth to 6.6% year-over-year in the second quarter, driven by increasing user spend as re-engaged players become more active on the platform. The company plans to scale spending on user acquisition, indicating a strategic focus on expanding its user base and ultimately enhancing revenue growth.

Skillz Inc. is experiencing a decline in total monthly active users, which has been estimated at -2.1% year-over-year, signaling potential challenges in user engagement and retention. While the company is taking steps to reduce its operating cash burn, the continuing decrease in active users may impact revenue generation negatively, as the Skillz segment constitutes the majority of its income. The combination of user decline and ongoing financial adjustments raises concerns about the company's growth prospects and overall financial stability.