5 Stocks to Buy Now According to Leonard A. Potter’s Wildcat Capital Management

1. Skillz Inc. (NYSE:SKLZ)

Wildcat Capital Management Stake Value: $160,943,000
Percentage of Wildcat Capital Management’s 13F Portfolio: 26.2%
Number of Hedge Fund Holders: 18

Skillz Inc. (NYSE:SKLZ) is a mobile game company that brings people together to compete. Following Skillz’ Q4 results, Citi analyst Jason Bazinet decreased his price objective on Skillz Inc. (NYSE:SKLZ) to $5 from $9 but maintained a ‘Buy’ rating. The analyst was optimistic about the stock, citing the company’s core platform and the possibility of positive EBITDA.

18 out of the 924 hedge funds in our database that filed 13Fs for the December quarter held stakes in Skillz Inc. (NYSE:SKLZ) as of December 31, owning $370.60 million worth of shares. The same number of funds were long SKLZ in the preceding quarter, holding stakes in Skillz Inc. (NYSE:SKLZ) totaling $432.23 million.

Wildcat Capital Management holds over 21.63 million shares of Skillz Inc. (NYSE:SKLZ) amounting to more than $160.94 million in value as of December 31, and representing 26.2% of the fund’s portfolio value.

In its third quarter 2021 investor letter, Bireme Capital mentioned Skillz Inc. (NYSE:SKLZ). Here is what the fund said:

“Another short position we initiated was in Skillz (SKLZ), a mobile game publisher with $230m in 2020 revenue, and $98m of 2020 EBITDA losses. When we shorted it, SKLZ had a ~$6b valuation; it is now down to $4.5b, and we believe it has much more room to fall.

SKLZ is a great example of investors getting hyped up over a quickly-growing company employing misleading industry jargon. In this case, the jargon is “eSports.” eSports is, in fact, a large and growing industry, and the term describes the business of competitive video games. Typically, this involves hosting tournaments, either live or online, where spectators can watch professional gamers compete at high levels. Prize pools are often in the millions. Ticket sales, sponsorships, and advertising revenue from such events totaled over $1b in 2020…” (Click here to see the full text)

Don’t miss out on additional compelling stock picks by checking out 10 Stocks to Buy According to Peter Simmie’s Bristol Gate Capital and 10 Stocks to Buy Now According to Jeffrey Gates’ Gates Capital

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