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3 Bullish Signs for Unity Investors

By Jose Najarro - May 13, 2021 at 6:15AM

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Unity just reported earnings, and the stock price is volatile. Here are three bullish signs for long-term investors.

In today's video, I look at Unity's (U -1.84%) earnings. The stock price has been very volatile, and it is currently down over 50% from its 52-week high. Below I share three bullish signs for the company.

Three Bullish Signs for Unity

  1. Unity reported revenue growth of 41% y/y, which exceeded its previous expectations. Unity increased guidance for FY 2021 and now expects revenue growth of 29%-31% y/y.  
  2. Management is investing aggressively in R&D for real-time 3D, which opens the opportunity in all types of markets outside of gaming -- ranging from household appliances, automotive, healthcare, aerospace, and so much more. 
  3. It is important to note that Unity is still not GAAP or Non-GAAP profitable, but the company does have a strong balance sheet of roughly $1.6B of cash, cash equivalents, and short-term investments compared to no debt. Its strong balance sheet should deter any worries about the company's financial health. 

Click the video below for my full thoughts. 

*Stock Prices used were the closed prices of May 11, 2021. The video was published on May 11, 2021. 

Jose Najarro owns shares of Unity Software Inc. The Motley Fool owns shares of and recommends Unity Software Inc. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Unity Software Inc. Stock Quote
Unity Software Inc.
$51.14 (-1.84%) $0.96

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