If You Invested $1,000 In Skillz When Cathie Wood Bought Stake In January, Here's How Much You Would Have Now

If You Invested $1,000 In Skillz When Cathie Wood Bought Stake In January, Here's How Much You Would Have Now

Skillz Inc 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 TSLA, Teladoc Health Inc TDOC and Zoom Video Communications 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 ARKK and the Ark Next Generation Internet ETF 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: Skillz 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.

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