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 REAL-TIME is revolutionary well beyond video games. See their recent "Enemies" demo for an example: LINK
The $10 billion dollar question is whether Unity, down 80%+ in 6 months, trades at a reasonable valuation?
This is tough to answer as it's still 8x forward sales, management's execution is lacking and they're issuing lots of stock. Is this cheap enough to compensate investors in an increasingly RISK-OFF environment?
At the time of this publication I haven't yet bought stock, but UNRIVALED INVESTING subscribers will be the first to know when I do!
For actionable insights and a detailed investment JOURNEY dedicated to finding stocks that can potentially go up hundreds or even thousands of percent, consider the UNRIVALED INVESTING PREMIUM subscription here: LINK.
UNRIVALED INVESTING has the following DISCLAIMER: LINK
50% Complete
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.