Shares of game engine maker Unity (NYSE:U)
jumped 13% in the afternoon session after Jefferies upgraded the stock from Hold to Buy and raised the price target from $22 to $29. This positive revision was driven by the firm's belief that Unity's improved Vector ad model will be a key catalyst, fueling accelerating revenue growth in fiscal year 2026 and beyond.
Shares of Unity Software are declining Thursday, cooling off after a recent rally. The dip follows strong Q1 results, exceeding estimates, yet analysts' reactions remain mixed.
Unity Software shares jumped 8.1% Wednesday, extending a rally since May 7 earnings. The surge, absent new developments, is fueled by social media buzz and retail investor interest.
Software is rapidly reducing operating expenses for businesses. In the past, the undeniable tailwinds fueling SaaS companies led to lofty valuation multiples that made it easier to raise capital.
But this was a double-edged sword as the high prices exposed them to big drawdowns, and unfortunately, the industry has tumbled by 10.2% over the last six months. This performance was worse than the S&P 500’s 3.3% decline.
The stocks featured in this article are seeing some big returns.
Over the past month, they’ve outpaced the market due to new product launches, positive news, or even a dedicated social media following.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at design software stocks, starting with Unity (NYSE:U).
Game engine maker Unity (NYSE:U) reported revenue ahead of Wall Street’s expectations in Q1 CY2025, but sales fell by 5.5% year on year to $435 million. On the other hand, next quarter’s revenue guidance of $420 million was less impressive, coming in 1.9% below analysts’ estimates. Its non-GAAP profit of $0.24 per share was significantly above analysts’ consensus estimates.
