Gee reminded investors that on September 12, 2023, Unity Software announced changes to its Runtime Fee policy, which resulted in price increases. Despite this, the analyst argued that Unity Software's stock is "more attractive today than on September 11," the day before the announcement. On September 11, the stock closed at $38, which Gee noted was 19% above the current price. Gee also highlighted that Unity Software has "lower projected revenue, a less clear path to monetizing its Create platform, and negative investor sentiment regarding mobile ad market positioning" relative to its competitor, Applovin.
However, the analyst expressed optimism and stated that Unity Software and investors are "better off today than before the price increases." Gee sees the recent selloff as an attractive buying opportunity, especially since the company has announced several refinements to address developers' concerns following the initial price increases.
Currently, 75% of top-rated analysts rate Unity Software as a Strong Buy or Buy, while 25% see it as a Hold. No analysts recommend or strongly recommend selling the stock.
Looking at the stock's performance, since Unity Software's last quarterly report on June 30, 2023, the stock price has decreased by 27.2%. Year-over-year, the stock is down 5.1%. During this period, Unity Software has been trailing the S&P 500, which is down 15.4%.
It's worth noting that Bank of America analyst Ryan Gee is ranked in the bottom 15% out of 4,337 Wall Street analysts by WallStreetZen. Gee has an average return of -4.8% and a 45% win rate. Their specialization includes the Technology, Communication Services, and Consumer Cyclical sectors.
Unity Software Incorporated operates an interactive real-time 3D content platform, allowing the creation and monetization of interactive content for various devices such as mobile phones, tablets, PCs, consoles, augmented reality, and virtual reality devices. The company serves a wide range of customers including content creators, developers, artists, designers, engineers, and architects. Unity Software offers its solutions directly through its online store, field sales operations, independent distributors, and resellers in the U.S. and internationally. The company was founded in 2004 and has its headquarters in San Francisco, California.
WallStreetZen tracks the performance of nearly 4,000 Wall Street analysts, whom we rank by average returns, frequency, and win-rate (backtested over multiple years).
Create a free watchlist and be the first to know when top-rated Wall Street analysts revise their U consensus stock forecast.
Want to get in touch? Email us at email@example.com.
WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.