Despite near all-time-low valuations, Unity remains a leader in 2D/3D content development, particularly in mobile and indie games and the XR market.
With analysts predicting no real growth until 2028 Unity holds a significant upside if it executes its strategy successfully.
Unity's increasingly diversified revenue streams in non-gaming sectors decrease its riskiness and bolster its long-term growth potential.
Significant restructuring progress with the new management addressing past missteps evident by the rollback of the controversial runtime fee.
The synergy between Unity's Create and Grow solutions could prove to be a key competitive advantage, though the increasing competition in the advertising and gaming markets remains a notable challenge.
Unity Software is in a solid financial position with positive cash flow and no immediate liquidity needs.

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The user andreas_eliades has a position in NYSE:U. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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Unity Software

ric

Community Contributor

Difficult times that could lead to better opportunities

Key Takeaways Unity is one of the top 3 tools to develop games and real time 3D prototyping and interactive data visualisation for many industries It has become the default game engine for Indie developers It has the ability to create VR games and apps AI enabled that allows prompt based game creation. It can also access AI models at runtime 3.6B made by unity downloads (mobile + Steam) Games can be exported to 20+ Platforms Unity is the only game engine company (that I know of) that can be traded in the stock market.

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US$20.31

4.3% undervalued

5.00%

Revenue growth p.a.

3 months ago