Could Apple Buy Unity? How This Analyst's Spicy Prediction May Impact U's Narrative

• Speculation that Apple could make a move to acquire Unity Technologies, following legal upsets impacting its App Store revenues
• Industry analyst Joost van Dreunen suggests Apple might buy Unity to "lock the supply chain"
• Unity stock has surged 25% in the past 5 days, a potential Apple acquisition could be transformative for both companies

Trump's oil boom is here, pipelines are primed to profit. Discover the 22 US stocks riding the wave.

Unity Investment Narrative Recap

Narratives simplify complex investment decisions. Our investment community regularly shares and refines perspectives on Unity, helping investors navigate fast-moving developments in both the game development and technology spaces.

For Unity, the current narrative hinges on two intertwined themes: operational transformation and the success of the Vector ad platform. Following Apple’s legal defeat to Epic Games—resulting in the loss of its control over App Store purchasing fees—industry analyst Joost van Dreunen floated the idea that Apple could acquire Unity Technologies. Unity’s dominance as the engine behind over 70% of mobile games, plus its full integration into Apple Vision Pro, would allow Apple to both strengthen its platform and potentially shut out a major Epic competitor.

This scenario is notable in the context of Unity’s transition: investments in AI, subscription upgrades, and operational discipline are all expected to lay the groundwork for a more predictable, higher-margin business. At the same time, the company is broadening its footprint into non-gaming verticals—recent partnerships with Toyota and Raytheon reflect a 50% jump in revenue from the industrial segment, signaling meaningful progress in diversification.

However the company has lost the trust game development community in recent years after changing their...

Read the full narrative on Unity (it's free!)

Unity’s narrative implies meaningful revenue and earnings expansion, albeit with significant execution risk. Analysts forecast 6.3% annual sales growth over the next three years, but don’t expect Unity to reach profitability in that period. Should profit margins rise to the industry average of 12% by 2028, Unity could see earnings per share rise from -$1.39 to $0.55, with earnings of $262.4 million—an ambitious jump from today’s negative $664.1 million.

Even with these forecasts Unity is trading around fair value - find out why.

Exploring Other Perspectives

Simply Wall St Community members provided 33 fair value estimates ranging from US$11 to US$36 per share. With the AR/ VR boom is over, some investors don't see much upside.

Explore an alternative story on Unity which sees the stock 32% undervalued!

Build Your Own Unity Narrative

Disagree with existing narratives? Create your own in under 3 minutes, extraordinary investment returns rarely come from following the herd.

• A great starting point for your Unity research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Unity research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Unity's overall financial health at a glance.

No Opportunity In Unity?

Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

• The end of cancer? These 23 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• Find companies with promising cash flow potential yet trading below their fair value.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com