Skillz (NYSE:SKLZ) stock has been taking a beating, but underneath the weakness in share price, the operating fundamentals behind SKLZ are improving. More specifically, we’re huge fans of the company’s technological expansion.
Skillz currently offers a variety of mostly casino-like games like Solitaire, 21 Blitz and pool, as well as some games based on sports or board games.
Casual games are insanely popular, but without more in-the-moment, action games, Skillz remains out of reach of many gamers.
But thanks to a partnership with Exit Games, the developer behind a leading multiplayer technology, Skillz will be able to expand its game repertoire with synchronous multiplayer titles — games where players compete with each other in real time.
Exit Games has worked with big names in gaming such as Sega, Square Enix, Ubisoft, Oculus and Bandai Namco, just to name a few, so the technology that will power future Skillz games is clearly as good as it gets.
And expanding the breadth of their game titles will lead to Skillz being able to serve a much larger market, with a much larger economic opportunity. Instead of only offering “casual” games, Skillz will be able to tap into every mobile gaming genre imaginable — first-person shooters, racing and fighting games and so on.
If Skillz can replicate the success it has had in casino games, then SKLZ stock is a multi-bagger in the making.
And today’s partnership with Exit Games is a huge leap forward for the company, enabling Skillz to create a broader array of enticing, synchronous games.
So, as long as management keeps executing on this front, we firmly believe SKLZ stock is deeply undervalued, with huge upside potential.
— Luke Lango and the Investor Place Research Staff
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Source: Investor Place