Shares of cell sport operator Skillz Inc. (SKLZ) – Get Report fell sharply Monday, touching its lowest ranges since January, after Wolfpack Research tweeted that it’s shorting the corporate’s inventory.
Skillz shares had been down greater than 12% eventually test with a pointy dip within the inventory coming concurrently Wolfpack Analysis’s 1:50 PM ET tweet.
Wolfpack, a short-selling analysis agency, referred to as Skillz in its analysis report “one other SPAC preying on retail traders by acquiring a ridiculous valuation for the SPAC merger primarily based on self-serving projections.”
The agency is brief Skillz as a result of its high video games “look like stagnant to declining, main us to consider its income projections are farcical.”
Wolfpack says that Skillz’s high three video games, which symbolize 88% of its revenues, had already plateaued by the third quarter of 2020.
“Whereas SKLZ could very effectively eke out its numbers for This fall 2020, involved traders ought to be searching for solutions relating to Q1 2021 steering on Wednesday’s earnings name,” the analysis report mentioned.
A request for remark from Skillz was not returned in time for publication.
The report additionally accuses Skillz of getting a historical past of saying massive offers and partnerships that “have traditionally amounted to little or no, or nothing in any respect.”
Wolfpack notes that Skillz recently announced a partnership with the NFL that pumped its inventory 25% to all-time highs, days earlier than the corporate filed an S-1 “permitting insiders to promote thousands and thousands of shares of inventory at these inflated costs.”
The agency says that “sensible cash” is betting that the NFL deal will not quantity to something materials for traders.