Skillz Inc (NYSE:SKLZ) shares jumped about 21% in a single session in early January when Cathie Wood’s Ark Invest added shares in the mobile eSports platform, which went public last December via blank-check firm Flying Eagle Acquisition Corp.
Last month, Skillz reported a record 52% jump in the second quarter on revenue of $89.5 million. The company guided for $375 million to $376 million in full-year revenue on a standalone basis and $389 million with the impact of the Aarki acquisition.
Wood had in April come out in support of Skillz after shares tanked following a Wolfpack Research that classified its top games as “stagnant to declining.” The popular money manager had said the claims were "either exaggerated or incorrect" and that Skillz had been a victim of misunderstanding related to its standing in the gaming ecosystem.
The Investment: If you invested $1,000 on Jan. 4, when Ark Invest made a debut in the stock, the investment would have fetched a loss as of the end of trading on Tuesday.
The popular investment firm, which has significant exposure in Tesla Inc (NASDAQ:TSLA), Teladoc Health Inc (NYSE:TDOC) and Zoom Video Communications (NASDAQ:ZM), had been piling up shares in Skillz until mid-May but trimmed its exposure in the stock in July.
The New York-based Ark currently owns 19.9 million shares, worth $$226.6 million, in Skillz that are divided between the Ark Innovation ETF (NYSE:ARKK) and the Ark Next Generation Internet ETF (NYSE:ARKW), ahead of Tuesday’s trade.
A $1,000 investment on Jan. 4 would be worth only $646.7 as of Tuesday, a 35.3% loss for the investor.
Price Action: Skilz shares closed 11.14% at $11.77 on Tuesday. The stock has a 52-week high of $46.30 and a low of $10.06.