U

Unity Software, Inc.

TMT, Software


Presented:01/18/2024
Price:$32.87
Cap:$12.49B
Current Price:$21.95
Cap:$8.71B

Presented

Date01/18/2024
Price$32.87
Market Cap$12.49B
Ent Value$13.62B
P/E RatioN/A
Book Value$8.54
Div Yield0%
Shares O/S380.02M
Ave Daily Vol12,723,743
Short Int7.82%

Current

Price$21.95
Market Cap$8.71B
Unity Software, Inc. engages in the developing video gaming software. It also provides software solutions to create, run and monetize interactive, real-time two-dimensional and three-dimensional content for mobile phones, tablets, consoles, and augmented and virtual reality devices. Its platform is used by developers, artists, and designers to build content for gaming, film, retail, automotive, architecture, engineering, and construction industries. The company was founded by Joachim Ante and David Helgason in 2004 and is headquartered in San Francisco, CA.

Publicly traded companies mentioned herein: Adobe Inc (ADBE), AppLovin Corp (APP), Autodesk Inc (ADSK), Unity Software Inc (U)

Highlights

The presenter is long shares of Unity Software Inc (U), a stock that has been subject to continuous negative headlines in recent years. The business started as a game engine, which is part of the current Create Solutions segment (1/3 of revenue), and is mostly used for non-AAA games, particularly mobile games. However, the company has largely struggled to monetize this business directly and now tries to leverage the platform to drive its Grow Solutions segment (2/3 of revenue), which operates Unity’s advertising auction and mediation platforms. He sees several opportunities for improvement in Grow Solutions and thinks the company can significantly rationalize the cost structure. Additionally, Create Solutions could garner interest from a strategic acquirer. At the current $33 share price, up ~30% over the past three months, he suggests caution going into earnings (late Feb), but sees upside to ~$40, which would become especially intriguing following an earnings dip.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.