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Unity Software: Tough Transition Still In The Works

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  • Unity Software's Q4 results showed progress, but the company still faces challenges, with 2025 being another transition year.
  • The company reported mixed Q4 numbers with a 25% sales drop, but the strategic portfolio sales grew 4% YoY.
  • Unity's new AI ad tech product, Vector, promises future growth, but the transition will impact revenues in the short term, leading to weak Q1 guidance.
  • The stock is back up to ~7x forward EV/S targets, expensive for a company with limited to no growth.
Unity Software Inc. (NYSE:U) soared on Q4 results, but the software company didn't report the huge turnaround insinuated by the stock gain. The game engine company is poised for a turnaround, but the business still has a long road ahead. My investment thesis remains Neutral on the stock, with 2025 being another transition year.

Read the full article on Seeking Alpha.

Disclosure: No position mentioned. Please review the disclaimer page for more deters. 

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