Skillz shares were down more than 12% at last check with a sharp dip in the stock coming at the same time as Wolfpack Research's 1:50 PM ET tweet.
Wolfpack, a short-selling research firm, called Skillz in its research report "another SPAC preying on retail investors by obtaining a ridiculous valuation for the SPAC merger based on self-serving projections."
The firm is short Skillz because its top games "appear to be stagnant to declining, leading us to believe its revenue projections are farcical."
Wolfpack says that Skillz's top three games, which represent 88% of its revenues, had already plateaued by the third quarter of 2020.
"While SKLZ may very well eke out its numbers for Q4 2020, concerned investors should be seeking answers regarding Q1 2021 guidance on Wednesday’s earnings call," the research report said.
A request for comment from Skillz was not returned in time for publication.
The report also accuses Skillz of having a history of announcing big deals and partnerships that "have historically amounted to very little, or nothing at all."
Wolfpack notes that Skillz recently announced a partnership with the NFL that pumped its stock 25% to all-time highs, days before the company filed an S-1 "allowing insiders to sell millions of shares of stock at these inflated prices."
The firm says that "smart money" is betting that the NFL deal won't amount to anything material for investors.