Is Unity Stock a Buy After Dropping 80%?
2022 has been a rough year so far for stocks, particularly ones in the tech sector like Unity Software (NYSE: U). Unity stock prices are down nearly 85% from 52-week highs set last November and well below the August 2020 IPO price of $52. But while Unity's share price slide can definitely cite the broader market decline related to inflation and recession fears as a contributing factor, the company's first-quarter earnings report (released May 10) is likely the main source for the sell-off.
Unity stock is definitely a buy at its current share price, but before deciding to invest in this video game software development company with metaverse potential, it's worth digging into company performance in 2022 to get a better understanding of Unity's challenges and strengths with an eye toward what long term potential it really has.
The bulk of Unity's revenue comes from two segments of its business: Create Solutions and Operate Solutions. Create Solutions offers subscriptions for real-time 3D software development tools while Operate Solutions offers additional services, such as monetization tools for video game developers, as well as hosting and in-game voice-chat services.
Source Fool.com
