Market Musings


Unity Collapse Continues! Is now the time to BUY U Stock?

$u $unity May 11, 2022

Unity Software, or U Stock, is down ANOTHER 30%+ today following their 1Q'22 results. Why? I just posted this videos for details: LINK

At first glace Unity continues to post very strong growth. Revenue was up 36% in the 1Q 2022. Their Content Creator subscription revenues (i.e. Create Solutions) accelerated to 65% growth as more industries beyond gaming are adapting their revolutionary tools! Unity is both winning new customers and their existing customers are spending more!

So why is the stock COLLAPSING? 

The answer is:

1. Prior Overvaluation,

2. Poor Execution, and

3. Continued Losses!

While it might seem strange to write "Poor Execution" when Unity just reported 30%+ growth, but because of a managerial oversight they expect a $110 MILLION impact to their business in 2022. I discuss this in greater length in the above video.  

Despite these headwinds, Unity still has tremendous future potential. The ability to create 3D, ultra-realistic renderings in...

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