How to Buy Skillz Stock – An Investment Beyond Gaming
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Mobile gaming and online betting, particularly on platforms like Skillz Inc.'s mobile games platform, have captivated sports enthusiasts globally. Skillz, listed as SKLZ on NASDAQ, offers a distinctive space for game developers to innovate and players to engage in skill-based games for cash rewards. This approach departs from conventional gambling, emphasizing player skill and competition on the Skillz platform.
Skillz’s unique business model, aligning game developers with players, sets it apart in the burgeoning mobile gaming industry. With the global mobile gaming market projected to reach $139.5 billion by 2026, Skillz’s position and growth rate on Wall Street and NASDAQ are noteworthy. The valuation of SKLZ stock, its potential cash flow, and pioneering role in integrating gaming with emerging trends like cryptocurrency make it a compelling option for investors. However, it’s important to recognize that SKLZ shares, much like penny stocks, can be subject to significant volatility.
Investors considering Skillz should approach it as a growth stock, understanding the dynamics of the mobile gaming sector and the potential implications of cryptocurrency in this space. Adding Skillz to your watchlist and considering becoming a shareholder involves assessing the company's long-term potential amidst the short-term volatility of tech stocks on NASDAQ and Wall Street.
In this article
Step 1: Find a broker that offers Skillz stock
To invest successfully, the first step you need to take is to find a broker that will allow you to buy and sell stocks. Brokers make it easier to buy stocks of publicly traded companies. You can buy Skillz stock differently, but the easiest is through an online brokerage. Opening an online brokerage account will take a few minutes, and you can buy any stock you want. Each platform will have its fees, commissions, and minimums. You must consider all the options before you make a final decision. Some brokerages also allow you to buy fractional shares, which is a great choice if you do not have a lot of funds. Let us consider the online platforms and see how they work.
Stash
Stash will make investing easy and hassle-free for beginners. It is ideal for those who do not know the stock market and have restricted capital. Stash is available for as low as $3 monthly for the beginner account and $9 monthly for the premium account. There is no need to make an opening deposit.
For $3 a month, you get a growth account and a retirement account, while Stash+, available for $9 a month, will get you insurance, investment accounts for two kids, a monthly market insights report, and double stock rewards. You can also buy fractional shares on the platform. The dividends from your stock will be automatically reinvested for you.
Pros and cons
Pros
- No minimum deposit is required for account opening
- Fractional shares of stocks sold
- Dividends are automatically reinvested
- Minimum monthly fees are as low as $3
Cons
- The focus will not be on individual stocks but your goals
M1 Finance
M1 Finance is an online broker that offers robo-investing. The brokerage is ideal for long-term investors who want to build a strong portfolio while reducing costs. It will not provide a financial advisor but allows you to set goals and build your portfolio. You can manage the entire portfolio through pie investing. You will see that your portfolio is broken down into a pie chart, which is easier to understand and takes a bird’s eye view of the allocation of assets.
Alternatively, you can choose a curated portfolio based on different investment strategies that will serve as the base of the portfolio. So, if you want to invest in Skillz stock, you can create custom pies and choose from the various investment products, including mutual funds, stocks, and ETFs. M1 Finance also offers fractional shares.
You can open an individual account, trust account, retirement account, and joint investment account. Your trades will remain commission-free, but you must maintain a minimum balance of $100 in the taxable and $500 in retirement accounts. Holding a stock portfolio will not incur a management fee. For $36 annually, you can get an afternoon trading window and set automated trading rules.
Pros and cons
Pros
- Commission-free trades
- Manage portfolio through pie-chart
- Fractional shares sold
Cons
- Pies may not make sense to a beginner
- A high minimum deposit required
- No financial advisors
Step 2: Research Skillz shares
Skillz is a company listed under NYSE with the ticker SKLZ. It is an online multiplayer video game competition platform that can be used on iOS and Android. Players across the world use it to compete against other players. It has gained massive popularity over the past few years.
Casey Chafkin and Andrew Paradise founded Skillz in Boston in 2012. Its headquarters are in San Francisco. Skillz hosts billions of casual esports tournaments for millions of mobile players worldwide and distributes millions of monthly prizes.
Skillz price history
Skillz has seen a lot of volatility over the past few months. It went public in December 2020 through a merger with a special-purpose acquisition company. Shares were listed for $9.95. As of May 15, 2024, shares are trading at $6.43. The stock price hit an all-time high of $874 in February 2021 but has since declined. It announced a reverse stock split in August 2023, consolidating 20 shares of Skillz stock into one share.
Skillz dividend information
Skillz has recently gone public and has not paid any cash dividends yet.
- Commission free stock trading.
- No account minimum.
- Trade stocks, options, ETFs, and more.
- First stock free.
Best features of Skillz stock
Skillz is a relatively new company on the New York Stock Exchange. The esports betting sector peaked because the pandemic confined us to our homes. Skillz-powered games include Blackout Bingo, Solitaire Cash, Solitaire Cube, Big Buck Hunter, Pool Payday, and more.
Related: Play Solitaire for Real Money,
Financial results show impressive numbers. First-quarter 2024 revenue hit $25.2 million, missing expectations, while the gross profit came in at $21.8 million.
Poised for solid growth. Skillz might be unprofitable today but has laid a path for profitable growth. The company aims to achieve this through sustained product innovation and enhancements that improve users' experience. The number of paid users is consistently increasing as well.
Check out the Motley Fool Stock Advisor Review service for the best information on Skillz Stock and related companies.
Step 3: Open an account & buy Skillz shares
If you are ready to buy some shares, open an online brokerage account and take the first step into investing. Using the best broker accounts, you can enjoy quick and convenient purchases at a low cost. I’ll show you how to use Stash as an example.
Go to Stash's website and click on Get Started. Then, enter your email address and password to begin.
Once you create an account, you must provide basic details like your name, address, birth date, citizenship status, phone number, pre-tax household income, and investment purpose.
After you provide the pre-tax estimated household income, you will be asked to choose a plan. You can always change plans, so do not worry about it. You can start with the beginner plan if you are new to the stock market.
Deciding the price at which you want to buy Skillz stock is essential. You can choose the limit price or market price. The limit price is the amount you set for the purchase. The transaction will only be executed when the stock hits the limit price you set. If you buy the stock at market price, the purchase will immediately be made at the prevailing price.
FAQs
How much were Skillz shares when the company first went public?
Skillz went public through a merger with a special purpose acquisition company, and the shares were listed for $9.95 on the first day of trading in December 2020.
How much does it cost to buy Skillz shares today?
As of closing on May 15, 2024, the current price was $6.43.
Does Skillz pay dividends?
Skillz does not pay any dividends yet.
What is the minimum number of Skillz shares that I can buy?
The minimum number of shares you can buy is one, or you can purchase fractional shares of the stock.
- Commission free stock trading.
- No account minimum.
- Trade stocks, options, ETFs, and more.
- First stock free.
The bottom line
Skillz stock has experienced a tumultuous journey, soaring to impressive heights and facing significant dips, a common scenario for many NASDAQ-listed companies. This volatility is a key consideration for investors and shareholders, as it reflects the inherent risks and opportunities in the stock market, particularly in sectors like mobile gaming and tech.
Despite these fluctuations, Skillz's solid financials and innovative approach to aligning the interests of players and game developers on its platform suggest considerable growth potential in the years ahead. Investors can access Skillz stock through online brokerage accounts such as M1 Finance, Robinhood, or Stash, which cater to various investment strategies, from navigating the volatility of penny stocks and crypto-related investments to focusing on long-term growth.
Investing in Skillz requires balancing understanding short-term market movements and focusing on the company’s long-term prospects as a growth stock. With the right approach and a brokerage that aligns with your investment goals, buying shares of Skillz could be a strategic addition to your portfolio, particularly for those keeping a close watch on innovative companies in the NASDAQ index and the evolving landscape of Wall Street.
tip: Install a Skillz app and use the code JOYWALLET to receive a $5 bonus cash on your first cash game.
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Editor
Vandita Jadeja is a financial writer and editor at Joywallet. She loves to read and write about money and brings a decade of experience from the financial industry.
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