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Is It Too Late to Invest in Unity Software?

By Jose Najarro – Sep 27, 2021 at 11:45AM

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In the past month, Unity's stock price has gone up by over 10%.

Unity Software (U 1.44%) provides numerous creative solutions for the digital world. The gaming industry is one of the many markets that use Unity's software. For example, game developers use it both during and after the development process. Today's video focuses on recent news affecting Unity, its current valuation, and its future markets. Here are some highlights from the video:

  1. The most significant growth opportunities for Unity are the following. One, the continued growth in gaming, especially mobile gaming growth outside the USA. Two, expansion into markets outside of gaming. Three, excitement about and consumer adoption of augmented reality and virtual reality.
  2. Unity's fundamentals show that this is a company still in its growth phase. The company continues to see an uptrend in revenue over the trailing 12 months, but unfortunately, it is not positive in TTM cash flow from operations.
  3. Unity's stock price has been very volatile over the past year, and the volatility can continue. Long-term investors should be prepared for a substantial pullback at any moment. Unity has a forward price-to-sales ratio of roughly 30, and many investors might consider this expensive for the software market. Unity seems to be a stock where dollar-cost averaging can be an attractive entry method for many investors.

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of Sept. 24, 2021. The video was published on Sept. 24, 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 policyJose 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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Stocks Mentioned

Unity Software Inc. Stock Quote
Unity Software Inc.
$36.02 (1.44%) $0.51

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