Skilz: Impressed is I
Thursday Apri 23, 2026
Two really good situational awareness trades in two weeks! Both very illustrative of why being patient and waiting out your trade can pay off big.
And, I have code to monitor Vol spikes as well that I didn’t pay attention to so missed this one too.
Today, Skillz Inc ($SKLZ) announced a jury had returned a verdict in the ongoing lawsuit with Papaya Games.
Businesswire must charge by the letter because the press release said almost nothing.
“We’re pleased with the jury’s verdict and appreciate the careful consideration of the facts. We remain committed to fair competition and to providing a trusted, transparent experience for players and developers.”
Here are more details from the case from Bloomberg Law.
“Papaya Gaming Ltd. was found liable for false advertising Thursday and ordered by a Manhattan federal court jury to pay $420 million in damages to its mobile gaming rival Skillz Platform Inc.
The jury, after a little more than two days of deliberations, also said Skillz is entitled to $652 million in disgorgement, which the judge said she plans to issue a decision on in early June.”
The company had played this pretty close to the vest. There had been to discussion of the trial except in the risk section of recent quarterly filings. But unless you were following closely this was easy to miss.
But, someone didn’t miss it. Look at the recent volume.
The chart is pretty straight forward here. Full model value was just over $22. The stock tripped liquidity twice this year and was trading below the channel. Would have been obvious had anyone been monitoring volume.
From $2.50 to $10-$20 depending on where they exited is a nice payday for ten days. My guess someone at Cantor made this trade? Or just someone in the gambling/gaming industry who was paying attention.
-AJ