Welcome to Growth Arcane, where we specialize in uncovering opportunities with compelling fundamental characteristics and robust long-term catalysts. With a primary focus on the US market, we delve into various industries, regardless of their market capitalization. Explore with us, and don't hesitate to reach out if you have any questions. Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the ...

Driven by the need to uncover what everyone else is overlooking, bet on it, and be right. I tend to look for contrarian, under-appreciated and misunderstood stocks with characteristics of value or growth at a reasonable price. My personal investment strategies employ individual stocks, stock options, bond and equity ETFs, centered on medium-term horizons spanning 2 to 5 years.Background: BEng in Mechanical Engineering, MSc in Applied Artificial Intelligence, experience in Concentrated Solar Power research a ...

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 ...

There's new management in town, so investors are hoping there will be positive changes. Unity Technologies (U 1.16%) went public in 2020 to sky-high expectations, and for good reason. According to the company, more than 70% of video games for mobile devices are made using its game-engine software, giving it a prominent place in the industry. The business also makes money with advertising services. And having this many apps in its ecosystem gives it an advantage over its competition, in theory. Consider, too ...

BlackJack3D Unity Software Inc. (NYSE:U) has undergone a lackluster q2'24 earnings release in which revenue continued its decline for both Create and Grow segments for a total decline of -16%. Management is taking strides to turn this company around with a new CEO taking the helm, bringing in new growth initiatives to recreate their adrevenue segment using machine learning and other dynamic features. Despite the excitement, management restated their eFY24 forecast with a significantly reduced revenue trajec ...

Why there could be a better stock to buy in the space. In its first earnings report under Matt Bromberg, the new CEO of Unity Software (U 6.84%) slashed the company's guidance for the year and looked to reset expectations. It is the next step in trying to turn around a company that has seen its stock slump over 60% in 2024. Let's take a close look at Unity's most recent earnings report and the potential for a turnaround. Slashing guidance Things started to turn south for Unity last fall when the company tri ...