Unity: All Talk, No Progress


  • Unity’s monetization business continues to struggle, with falling revenue and large losses on the back of excessive stock-based compensation.
  • Market conditions aren’t helping, but Unity’s problems are primarily self-inflected, and the company’s failure to address its problems doesn’t inspire confidence.
  • While Unity’s valuation could eventually result in significant upside, this is likely a long way off.
  • In the short-term, downside risk remains elevated due to Unity’s lack of growth and the ongoing dilution of existing shareholders.
Playing game on mobile phone

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Unity (NYSE:U) has put considerable effort into turning around its business over the past few years to little avail. Management remains optimistic but investors have been fed largely the same message for several years now. Outside of the ironSource acquisition, revenue has

Analyst’s Disclosure: I/we have a beneficial long position in the shares of U either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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