1 Reason to Buy Unity Stock Right Now, and 1 Reason to Be Cautious

Unity Software (NYSE: U) is a mess right now. The video game industry, the main source of Unity's software subscription revenue, is still growing at a brisk pace despite economic headwinds (as it has been fairly consistently for decades now). But disruptions to the digital ad industry in the last year, plus some internal stumbles and a bear market that turned the microscope toward Unity's lack of profitability, have left plenty of question marks surrounding this business.  

Nevertheless, Unity finally wrapped up its acquisition of ironSource at the end of 2022 and is looking forward to a new chapter featuring profitable growth in 2023. That's at least one reason investors might want to buy Unity stock right now, albeit cautiously. 

2022 was quite a dramatic one for Unity, and not just because of the bear market (Unity stock crashed 80% last year). One business line in particular called Unity Monetization (formerly reported under the "Unity Operate" segment, which has now been changed to "Unity Grow") got the hiccups. Basically, the company found a fault in its digital ads pinpointer tool that helped game developers monetize their work, and the use of faulty data didn't help matters.

Continue reading


Source Fool.com