Unity Software (U +7.56%) has experienced a volatile trading period since its initial public offering (IPO) in September 2020. While the company's share price has rocketed 89% higher over the last year of trading, it's still down 37% from market close on the day of its IPO.
NYSE: U
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Even more shocking, the stock is down 78.5% from its valuation peak as of Sept. 26. But even though Unity stock has seen highly uneven trading across its history as a publicly traded company, it could still be in the early stages of a massive long-term rebound and success story aided by artificial intelligence (AI) technologies.
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Unity has the pieces in place to deliver big wins
Unity's business has experienced some rough patches, largely due to poorly placed growth bets and poorly received monetization strategies. On the other hand, the company retains a leading position in the game-development-engine services niche. The company's strengths in its corner of the video game industry should also help it tap into, and better leverage, digital marketing opportunities.
Earlier this year, Unity rolled out its new AI-powered digital marketing platform -- and results with the new software have already been encouraging. With the Q2 report it published in August, the company announced the sales for the Unity Ad Network had increased 15% on a sequential quarterly basis thanks to the impact of its now AI-focused ads platform. The new ad tech and focus on operational efficiency looks poised to power performance improvements for Unity's business that wind up being very rewarding for patient shareholders.
