Skillz Stock Pops on Increasing WallStreetBets Mentions

Skillz (NYSE:SKLZ) stock up is soaring Wednesday as the peregrine games provider receives increasing attending on pop financial social media sites, including Reddit’s notorious WallStreetBets.

In betimes trading, shares of the esports tourney provider are higher past more than Nina from Carolina percent on loudness that’s already to a greater extent than triple the day-to-day average. Earlier today, the castellated stock traded up by as practically as 15 percent. Wednesday’s bullishness inwards the public figure comes after it jumped 11.1 percent yesterday.

Data designate that Skillz ascended to the teetotum cinque inward terms of message volume on WallStreetBets o'er the past 24 hours, and is among the top off ten trending tickers on StockTwits, another trading forum.

Discussions of Skillz on the Reddit forum WallStreetBets are up more than 4,000% over the yesteryear 24 hours, and have surpassed talk of the town of Corsair, GameStop, and AMC,” reports Seeking Alpha, citing Quiver Quantitative.

Video gamey retailer GameStop and film theater chain AMC are among the stocks WallStreetBets traders focused on over the past year, amassing substantial profits inward some cases, while bringing notoriety to the Reddit forum. The aforementioned statistics and the sudden enthusiasm for Skillz could live signs that the gens is getting close-fitting to “meme stock” status.

Skillz Stock Has Meme Credibility

The musical phrase “meme stock” was born from the Reddit forum WallStreetBets, or WSB inwards social media lingo. The cartel of retail traders is manufacture agnostic, import they’re flexible on companies’ sector and manufacture classifications. But thither are some hallmarks WSB traders typically look for.

Notably, the names that often pull in prominence inward the meeting place are misunderstood inward some form, struggling in terms of cost sue and hard shorted. Skillz caudex checks at least two of those boxes. The shares are push down 41.15 percent year-to-date and are heavily shorted. As of Aug. 13, 57.28 million shares of Skillz were on loan to short-sellers, or 23.46 percent of the total float, according to Dow John Luther Jones data.

Since March, at to the lowest degree deuce-ace bearish explore reports emerged attacking Skillz, sparking substantial downside inwards the stock.

Outsiders scene the shortsighted stake factor as essential to WSB trades because of the belief that the army of Reddit traders will ring together, purchase a stock, run it higher and ram myopic sellers to cover version their bearish positions, fanning the flames of the rallying inwards the process.

Potential Catalysts for Skillz Stock

Interestingly, the two-day exchange inward Skillz arrives almost exactly a twelvemonth after Keith Gill, the WSB trader known as The Roaring Kitty, got the political party started with GameStop.

Specific to Skillz, the name has some other possible catalysts lingering.

It’s residing 14.76 percent below its 50-day moving average. If the electric current rallying is sustainable and takes the caudex supra that expert indicator, bearish traders could get fretful and underwrite positions. That’s because it’d live bullish inwards expert analytic thinking terms for the buy in to repossess that line, which it hasn’t traded higher up since July.

Second, Skillz has been rumored to live a possible takeover target. If that venture gains momentum, and to a greater extent importantly, credibility, the stockpile would almost certainly rally. That would potential pose shorts in a bind, too.