Unity Software Stock Plummets. Is it a Buy Now?

May 11. 2022. 6 mins read

There’s an old saying the Americans have which goes something like this. Take a number two or get out of the loo. It’s about being decisive and acting with conviction. In the world of investing, this becomes critically important. When a stock you’re holding falls and your thesis hasn’t changed, you add more shares if you have capital allocated to that position. That’s where we stand today with Unity Technologies (U) – which we will henceforth refer to as Unity Software because our SEO ninja said so.

As the market hits the skids harder than Pete Dougherty on any weekday night, we find our tech investing methodology changing a bit. While before we focused on revenue growth above all else, now that capital is drying up, we’re also focusing on runway. You better have made hay while the sun shined because now that share prices have plummeted off a cliff, raising capital by selling equity means you’re diluting existing shareholders much more significantly. As for raising debt, that’s more costly as well. So with that in mind, let’s take a look at the latest growth angel to fall from grace after a lackluster earnings report.

Through virtually every major crisis, the game industry has grown. Through recession, the game industry has grown. Through catastrophes like 9/11, the game industry had strong weeks immediately following. It is what people do when they’re frustrated.

Unity Software

Unity Software Stock Plummets

When you talk about a stock “plummeting,” you need some context. These days, all stocks are pl

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