SKLZ Stock Price Increases 21.32%: Why It Happened

By Amit Chowdhry ● Jan 6, 2021
  • The stock price of Skillz Inc (NYSE: SKLZ) increased by 21.32% as it went from a previous close of $18.20 to $22.08 on January 5. This is why it happened.

The stock price of Skillz Inc (NYSE: SKLZ) — a leading mobile games e-sports platform that connects players — increased by 21.32% as it went from a previous close of $18.20 to $22.08 on January 5. One of the biggest triggers for the stock price increase has to do with ARK Invest buying shares of Skillz. ARK Invest is very popular with investors as it has delivered significant returns.

Skillz went public recently through a reverse merger with Flying Eagle Acquisition Corporation, a special-purpose acquisition company (SPAC). And it started trading under the SKLZ ticker in the middle of December.

Skillz hosts 2 billion tournaments every year. And the number of minutes spent on the platform per day is much more significant than the time spent on social media platforms.

According to Fool, the updated holdings of the ARK Next Generation Internet ETF (NYSEMKT:ARKW) — which was released on Monday — showed that the ETF bought over 215,000 shares of Skillz. This position is valued at nearly $4 million. Even though this position is valued at 0.07% of ARK’s holdings, retail investors closely watch the positions of ARKW for making decisions on what to add to their portfolios.