After 43+ years working for one investment research company or another, I finally retired. So now, I’m completely independent. And for the first time on Seeking Alpha, I won’t be working based on anybody else’s product agenda. I have only one goal now… to give you the best actionable investment insights I can.I have long specialized in rules/factor-based equity investing strategies. But I’m different from others who share such backgrounds. I don’t serve the numbers. Instead, the numbers serve me… to inspire ...

Unity Software Inc. (U) has been on a downward spiral lately with significant selling pressure. After declining 20.1% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a s ...

Unity Software (U) shares have plunged 36.3% in the trailing 12 months, underperforming the Zacks Internet – Software industry, Zacks Computer and Technology sector and the S&P 500 index’s decline of 5%, 7.6% and 2.2%, respectively.The company’s underperformance can be attributed to several external factors like macroeconomic headwinds and intense competition that are affecting investor confidence. Despite the market's negative reaction, U’s strategic initiatives reveal promising future growth potential. Le ...

Core Viewpoint - Unity Software Inc. has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements [4][6]. - Unity Software is expected to earn -$1.19 per share for the fiscal year ending December 2025, reflecting a year-over-year change of 29.2% [8]. - Over the past three months, the Zacks Consensus Estimate for Unity Software has increased by 6% [8]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [9][10].

A downtrend has been apparent in Unity Software Inc. (U) lately. While the stock has lost 13.8% over the past week, it could witness a trend reversal as a hammer chart pattern was formed in its last trading session. This could mean that the bulls have been able to counteract the bears to help the stock find support. While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future e ...

Group 1 - The article discusses the challenges and opportunities in high growth tech stocks amidst recent market turmoil, emphasizing the need for optimism and resilience [1] - Bert Hochfeld, the author, has extensive experience in the tech industry and has been recognized for his analytical work, particularly in the software sector [1] - Hochfeld founded his own research company, which provided services to major institutions and was recognized for the performance of his hedge fund, the Hepplewhite Fund, prior to his conviction for misappropriating funds [1] Group 2 - The article does not provide any specific investment recommendations or advice, focusing instead on the author's personal insights and experiences [2][3]

Core Insights - Unity Software has experienced a 20% decline in stock price over the last 12 months, attributed to issues such as a short-term oriented CEO and a problematic fee structure [1] Company Analysis - The company has faced significant challenges over the past three years, impacting its overall performance and investor confidence [1] - The current leadership's focus on short-term results has raised concerns regarding the company's long-term strategic direction [1] Financial Performance - The stock price drop of 20% indicates a lack of investor confidence and potential underlying issues within the company's operational and financial strategies [1]

Core Viewpoint - The stock market sentiment towards Unity Software has turned bearish, with the stock price declining over 15% in the past week due to recent analyst updates [1]. Analyst Changes - Wells Fargo analyst Brian Fitzgerald reduced his price target for Unity from $27 to $22 while maintaining a hold recommendation [2]. - Macquarie's Aaron Lee upgraded his recommendation from sell to neutral and raised his price target from $16 to $24 [3]. - JMP Securities analyst Andrew Boone upgraded Unity to outperform with a new price target of $30, citing the potential of the upcoming Vector ad platform [4]. Product Launches - Unity is set to launch the Vector ad platform and the Unity 6 graphics engine, with the Vector platform being particularly promising due to its integration of artificial intelligence [5].

Core Viewpoint - Unity Software's stock has declined 90% from its peak in 2021, but analysts remain optimistic about its turnaround potential [1][2] Financial Performance - Unity's revenue fell 17% in 2024, but fourth-quarter results exceeded expectations [3] - Analysts predict a 2% revenue decline for Unity this year, followed by a 10% growth in 2026 [5] Analyst Insights - JMP Securities upgraded Unity's stock to outperform (buy) with a price target of $30, indicating a 36% upside from the current price of $21.95 [2] - The average 12-month price target from Wall Street is $28.95, suggesting a generally positive outlook [2] Growth Catalysts - The new Unity Vector ad network, powered by AI, is expected to enhance competitive positioning and long-term growth prospects [3] - The launch of Unity 6 graphics engine has seen 2.8 million downloads, contributing to a 15% year-over-year growth in subscription revenue [4] Challenges Ahead - Management indicated that it will take time for Unity Vector to yield positive business results [6] - Analysts expect Unity to report losses this year, which may hinder stock performance unless revenue growth accelerates significantly [6]

Core Viewpoint - Unity Software's stock has declined significantly, presenting a potential buying opportunity for long-term investors despite recent market reactions [1][19] Financial Performance - Unity reported Q4 revenues of $457 million, surpassing analyst expectations of $433.47 million, with adjusted EBITDA at $106 million, reflecting a 23% margin [3] - Total revenues decreased by 25% year-over-year, primarily due to a strategic portfolio reset, while the core strategic portfolio grew by 4% [3] - Free cash flow for Q4 was $106 million, a 74% increase from $61 million the previous year, and for 2024, free cash flow reached $286 million, up 60% from 2023 [5] Strategic Initiatives - The Create Solutions segment saw a 15% year-over-year growth in subscription revenues, while Industry strategic revenues surged by 50% [4] - Unity's new AI-powered advertising platform, Vector, aims to enhance targeting precision and optimize performance through self-learning AI models [9][10] - The company is expanding its presence in non-gaming sectors, securing partnerships with Toyota and Raytheon, which highlight its versatility in enterprise markets [11][12] Market Position - Unity maintains a dominant position in game development, powering approximately 70% of the top 1,000 mobile games and 30% of top PC games on Steam [16] - The Unity 6 platform has seen robust adoption, with nearly 38% of active users upgraded and 2.8 million downloads since launch [15] - Unity is establishing leadership in emerging technologies like mixed reality, with significant partnerships enhancing its position in this high-growth segment [17] Investment Consideration - Despite a forward P/S ratio of 5.37X, higher than the industry average of 4.33X, Unity Software presents a compelling investment opportunity due to its strong market position and growth potential [13] - The anticipated revenue for 2025 is $1.78 billion, indicating a slight year-over-year decline of 1.8%, with a consensus loss estimate of $1.22 per share, narrower than the previous year's loss [7][8]