Don't Buy Unity Software Stock Until It Stops Doing This 1 Thing

Core Viewpoint - Unity Software has experienced significant stock decline since its IPO, with shares trading over 30% below the debut price and nearly 80% below the all-time high in 2021 [1][2] Company Performance - Unity remains a leading platform for game developers, with a potential global gaming market estimated to reach $600 billion by 2030 [2] - The company has seen a 62% increase in outstanding shares since its IPO, primarily due to stock-based compensation and acquisitions [6] - Over the past year, Unity has allocated more than 20% of its total revenue to stock-based compensation, contributing to poor stock performance [8] - Unity reported a net loss of $434 million over the past year, indicating ongoing unprofitability [11] Management Decisions - The company faced backlash for attempting to implement a controversial Runtime Fee structure, which charged developers for installations after reaching certain milestones [9] - There is skepticism regarding the company's ability to improve business execution and profitability while continuing to dilute shares [12]