Company Performance - Unity Software Inc. closed at $22.59, reflecting a +1.12% increase from the previous day, outperforming the S&P 500's loss of 0.13% [1] - The stock has increased by 34.01% over the past month, surpassing the Computer and Technology sector's gain of 2.7% and the S&P 500's gain of 2.43% [1] Financial Forecast - The upcoming earnings report is expected to show an EPS of -$0.39, representing a 316.67% decline from the same quarter last year [2] - Revenue is forecasted to be $427.99 million, indicating a 21.36% decrease compared to the year-ago quarter [2] Annual Estimates - For the entire year, the Zacks Consensus Estimates predict an EPS of -$1.86 and revenue of $1.76 billion, reflecting changes of -553.66% and -19.5% respectively from the previous year [3] - Analysts' estimate revisions are crucial as they indicate the evolving nature of business trends, with positive revisions suggesting a favorable outlook [3][4] Zacks Rank and Industry Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have generated an average annual return of +25% since 1988 [5] - Unity Software Inc. currently holds a Zacks Rank of 3 (Hold) [5] - The Internet - Software industry is ranked 85 in the Zacks Industry Rank, placing it in the top 34% of over 250 industries, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [6]

Unity Software Inc. (U) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Shares of this company have returned +33% over the past month versus the Zacks S&P 500 composite's +1.7% change. The Zacks Internet - Software industry, to which Unity Software belongs, has gained 5.2% over this period. Now the key question is: Where could the stock be headed in the near term? ...

The video game engine developer has a new leader and a new strategy. The stock chart for video game engine developer Unity (U 2.69%) sure doesn't look pretty. Since peaking in late 2021, shares of Unity are down nearly 90%. Once valued at more than $50 billion, the company's market capitalization has fallen to about $8 billion. A lot has gone wrong for Unity over the past few years: A highly acquisitive strategy, which saw the company shell out $4.4 billion in stock for app monetization platform ironSource, ...

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Core Viewpoint - Unity Software has decided to cancel its controversial runtime fee, which was introduced last year, in response to significant customer backlash and is now planning to increase subscription prices by 8% to 25% starting January 1 [2][3][4]. Group 1: Pricing Changes - The runtime fee, which charged customers every time a game was downloaded, has been eliminated by Unity's new CEO, Matt Bromberg [2][3]. - Subscription prices will increase by 8% to 25%, depending on the package, effective January 1 [4]. Group 2: Financial Implications - Investors can expect Unity's revenue to rise as a result of the pricing changes, potentially improving profit margins [5]. - There is uncertainty regarding customer retention due to the rapid changes in pricing, which could affect the anticipated financial benefits [5]. Group 3: Future Developments - The success of Unity's upcoming software release, Unity 6, may influence customer subscriptions despite previous issues with the runtime fee [6].

Core Insights - Unity Software Inc. is a leading platform for creating and managing real-time 3D content, with its game engine used in nearly 50% of all video games and 70% of the top 1,000 mobile games globally [1][3] Company Overview - Unity's stock is currently priced at $16.72, down 2.62% from previous levels, with a 52-week range between $13.90 and $43.54 [3] - The company faced significant backlash after implementing a "runtime fee" in July 2023, which led to a stock price collapse from $47.16 to an all-time low of $13.90 on August 7, 2024 [3][5] Recent Developments - Following the runtime fee incident, Unity's CEO, John Riccitiello, publicly apologized and resigned [5][6] - The revised runtime fee policy applies to games made on Unity 6 or higher, exempting developers using Unity Personal Edition until they earn $200,000 in revenue [6] - The fee structure is designed to protect smaller developers while still generating revenue from larger studios [6] Financial Performance - Unity's Create Solutions segment saw a 4% year-over-year revenue growth, with core subscriptions increasing by 14% year-over-year [7] - In Q2 2024, Unity reported losses of $0.32 per share, missing consensus estimates, while revenues slid 15.8% year-over-year to $449.3 million, but core strategic portfolio revenue rose 6% year-over-year to $426 million [9] - For Q3 2024, Unity expects strategic portfolio revenue between $415 million and $420 million, with adjusted EBITDA between $75 million and $80 million [10] Market Outlook - Morgan Stanley upgraded Unity stock to Overweight from Equal Weight, setting a price target of $22, citing reduced risk from the guidance cut and Unity's strong market share in mobile gaming [11] - The average consensus price target for Unity is $26.46, with a high forecast of $56.00 [13]

Morgan Stanley just called a bottom on plummeting Unity Software stock. Investment bank Morgan Stanley upgraded shares of 3D graphics software company Unity Software (U 8.77%) to overweight this morning, and raised its price target to $22 per share. Unity stock responded by soaring 8% through 10 a.m. ET Tuesday. What Morgan Stanley said about Unity stock Quoted by Street Insider this morning, Morgan Stanley analyst Matthew Cost cited significant price underperformance by Unity stock (down 57% over the last ...

That price target actually represents a reduction from his previous evaluation. To put it mildly, Unity Software (U 1.27%) has not been a well-performing stock this year. It has lost nearly 60% of its value while the benchmark S&P 500 index has gained in excess of 16%. Yet the stock still has believers who feel it can head skyward before long. One of them recently cut his price target on the shares, but still thinks better days are ahead for the company. A somewhat contrarian view Analyst Jason Bazinet from ...

Unity Software stock has likely surprised many investors with its performance in recent years. There's been a lot of interest in Unity Software (U 0.36%) in recent years. You might understand why when you learn that the company "offers a suite of tools to create, market, and grow games and interactive experiences across multiple platforms from mobile, PC, and console, to spatial computing." Video gaming is big business, after all. Per Grand View Research, the video game market was valued at around $217 bill ...