Remember when the metaverse was all the rage? Investors poured into gaming companies in particular as enthusiasm around virtual reality (VR) and other metaverse applications reached a fever pitch.

One stock that witnessed a meteoric rise was Unity Software (NYSE: U), a staple in Cathie Wood's highly tracked portfolio that could represent a buying opportunity, as it now trades 80% below all-time highs.

But investors might want to approach Unity stock with caution. The company is in a transition as CEO John Riccitiello resigned earlier this month after a botched attempt at new pricing structures. Given the number of questions around the company's forward path, some on Wall Street are speculating that an old suitor, AppLovin (NASDAQ: APP), might sense desperation and pounce on the opportunity to acquire Unity.

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Source Fool.com