Video game engine developer Unity Software Inc. (NYSE: U) stock collapsed on its Q4 2022 earnings release. The company made its first non-GAAP profit since going public and beat revenue estimates. However, it made the fatal mistake of guiding down its next quarter’s revenues. The Unity game engine enables more efficient and accessible video game development. Unity owns half the market share for video game engines developers use and an estimated 60% of mobile games. Take-Two Interactive Software Inc. (NASDAQ: TTWO) owned Zynga has used Unity’s game engine for its popular Word with Friends and Farmville franchise mobile games. Major gaming consoles by Sony Co. (NYSE: SNE) PlayStation 5 and Microsoft Co. (NASDAQ: MSFT) Xbox ) have many games developed on the Unity game engine. Runup Into Earnings Just days before its earnings release, Unity shares had run up to as high as $43 on the heels of a strong earnings release from Roblox Co. (NASDAQ: RBLX) on Feb. 15, 2022. Roblox showed improvement in daily active users (DAUs) and the return of rising bookings . Roblox shares spiked over 25% on its earning release. Unity shares went along as these stocks tend to move together in sympathy. However, […]
Is Unity Software Earnings Fallout a Buying Opportunity?
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