2 Reasons I Just Bought Unity Software

For a long time, investing in the gaming industry was something that I was not comfortable with. If a company relies on just two or three popular games, it can face incredible revenue concentration, and since video games are not popular forever, companies consistently have to come up with the next big hit to remain successful.

Unity (NYSE: U), however, is different. The company does not develop games directly, but rather sells tools to allow individual developers to create their own games. This pick-and-shovel approach is much more appealing: It gives Unity a stable, consistent revenue stream while allowing it to take advantage of the fast-growing gaming industry. The company has been furthering its dominance as one of the top development platforms, and considering that its stock is down more than 50% from its all-time high, it was the right time for me to finally add this company to my portfolio.

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Source Fool.com