Here's Why Skillz Stock Is Down 6% Today

What happened?As of Thursday, 12:25 p.m. ET, shares of esports platform Skillz (NYSE SKLZ) had fallen more than 6%. Although there was no new to cause the sharp decline, shares rose earlier in the week, despite no other news. It continues to be volatile stock, with many raving fans as well as lots of detractors. So big daily moves such this are not unusual.What are you waiting for?Skillz stock quickly doubled its value in January after it was made public by a special-purpose acquisition corporation (SPAC). The shares of the rapidly-growing esports company have slowed down since then and are now about equal to where they were at the time it went public.Skillz stock has a lot of things to love. The management expects revenue growth of 63% this year. Aarki, a marketing company, was recently acquired by Skillz for $150 million cash. Ian Lee, formerly of Airbnb (NASDAQ:ABNB), was appointed as the Skillz Chief Financial Officer.However, there has been a lot of negative press surrounding Skillz's $8 billion market cap. This puts the company's current-year sales at 22x. Skillz shares have been sold short by 16%, which means that traders are placing bets against the company and could benefit from a further fall in share prices.What now?Skillz's rapid growth is evident. The company didn't hesitate to use some of its $613 million in cash equivalents (as at March 31) to pay for the Aarki purchase. This acquisition will increase the company's growth prospects for this year.Skillz is currently operating at a significant loss, but that's normal for a tech company growing rapidly that funnels large amounts of cash into marketing and sales to increase its growth. This company is expected to become a very profitable one with a gross profit margin close to 95% in the first quarter 2021.Skillz stock is a volatile investment, despite its high price tag and many traders betting against it. The wild stock movements on a daily basis are not a concern for investors who focus on the long-term potential.