Should you buy Unity stock? (July 2024)

Published first at https://www.3minutebreakdowns.com Unity stock analysis. Ticker: $U The story of Unity Software is one of mismanagement and missed opportunity. The company’s original game engine has always been strong but management entered into a number of expensive acquisitions to grow the company which haven’t all paid off. The company's bid for advertising business Irounsource was criticized from the beginning while revenue in the most recent quarter fell by 8%. Unity then shot itself in the foot by changing the pricing of its product. Previously, game developers only paid a fixed, annual licensing fee to use the Unity software, but Unity tried to increase revenue by taking a share of every installation of a game developed on Unity’s engine. Developers were up in arms and many left the platform for rival engines. Unity eventually backtracked though they did keep the new pricing structure for larger customers. In response to the turmoil, Unity has made a number of changes. A service agreement with Wētā Digital which Unity bought for 1.6 billion has been terminated, the hardware business has been cut and about a quarter of staff laid off. Those layoffs will help reduce stock-based compensation which will move the company closer to profitability. New CEO Matt Bromberg has also been brought in from Zynga to turn the company around. #investing #stocks #unitystock #3mb