Skillz Inc (SKLZ) Stock Price and Forecast: Is it buy the dip or bye bye?
- SKLZ stock has retreated back to calm and quietness.
- Are retail traders forgetting about the stock and moving on to the next thing?
- Skillz is at the original breakout point of $12.
Skillz shares were all in vogue last week with the retail set, but just like the jet-set this crowd is fickle and appears to have moved on to the next trendy thing. SKLZ volume has dropped, and social media mentions have also fallen off a cliff. Is the share price set to follow? Interestingly, what we can see from the Refinitv social media sentiment chart below is that while mentions have dropped off (the bar chart), the actual sentiment is still bullish despite the number of mentions falling sharply.
Skillz Inc key statistics
| Market Cap | $4.9 billion |
| Enterprise Value | $7.7 billion |
| Price/Earnings (P/E) | |
|
Price/Book | 69 |
| Price/Sales | 17 |
| Gross Margin | 0.9 |
| Net Margin | -0.73 |
| EBITDA TTM | -$-144 million TTM |
| 52 week low | $10.06 |
| 52 week high | $46.298 |
| Average Wall Street rating and price target |
BUY $18 |
SKLZ stock forecast
The social media chart above is an interesting one and shows a pretty decent correlation between sentiment and price action but only when social media mentions are high. Today the stock is not really registering on social media with BBIG, AMC and others seemingly taking the attention of retail traders.
Skillz stock broke out last week popping from $12 to $14 but got into trouble at $14 and failed to push higher. The reason for this was the volume profile bars, something we previously pointed out to readers. This was our call last week when the stock was trading just above $12: "There is a volume gap from $12 to $14, which is a not-too-shabby 20%-plus gain, but once we get into heavy volume traffic, consider taking some longs off the table to bank some profits ".
SKLZ shares tested and failed at $14 and retraced back to $12. Breakouts remain positive so long as they do not break the support level created by the breakout, which in the case of SKLZ stock is $12. SKLZ closed on Friday at $12.10. Use a tight stop as this is volatile, and also breaking below $12 ends the bullish sentiment in our view. Again tracking much above $14 will be difficult. The aim to consolidate at $14 in order to try and push higher later.
Buying the dip can be tried, but take caution and use stops, this is a highly volatile stock and highly speculative trade. The Relative Strength Index (RSI) has yet to even break above 50, showing just how week the trend is.
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
