Unity Software: Tough Transition Still In The Works
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.