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VisualMod t1_jdx99vv wrote

>It's always been a trash company, and it will continue to be one. It's just a matter of time until the whole thing collapses.

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NoobCinema75SGF t1_jdxebxk wrote

UE5 came a long and ate it's breakfast, lunch, and dinner. Unity is a dead company; It just needs to realize it.

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onetapsfordays t1_jdxxfut wrote

Unity is still a good choice for mobile games but yeah for desktop and consoles, it’s game over.

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NoobCinema75SGF t1_je17hog wrote

Agreed. But UE will crush them there as well, as soon as the asset shop and dev tools start flooding mobile. Unfortunately Unity is 'roblox' style tech and is now up against a better product that has wider reach, better finances, and more projects building AAA titles on it.

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skilliard7 t1_jdyj2sr wrote

Unreal engine is way too convoluted + it charges royalties. I prefer Unity over Unreal.

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NoobCinema75SGF t1_je16mcv wrote

I'm sure there are at least 8 people out there who would rather use Unity (I kid). But for AAA-titles there simply is no competition to UE 5+ when it comes to fidelity, performance, and utility.

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HoosierGuy2014 t1_jdxukb2 wrote

All I know is Motley Fool recommended it at $196/share. img

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mazarax t1_jdxreqj wrote

The case of $U is simple:

  • Unity has never been profitable.
  • In 2022, they doubled their losses, which are now approximately $1B per year.

Should you buy it?

No, it is going to zero, and it has never paid a dividend, ever.

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[deleted] t1_jdxrl9l wrote

What's your advice, to only lose money in profitable companies?

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mazarax t1_jdxsaya wrote

My advice is to put your money in $MCD which is at an all time high, because selling burgers and fries will always be a profitable business. Recession or not.

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Extra-Season-4141 t1_jdyu3n8 wrote

every time i drive by mcdonalds and see all the fat fucks in the drive through i think its a booming business, but the clientelle will die off in the long run.

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mazarax t1_jdyxlm7 wrote

I will worry about their bottom line when America gets skinnier. For now, Americans get fatter every decade. And MCD is where they can get their excess calories.

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Extra-Season-4141 t1_jdyy2nn wrote

Since people seem to be getting stupider over time, mcdonalds will likely remain the king for cheap tasty food. Yes the people will die off, but the offspring will eat it and give another 20 years of profit for mcdonalds. For that reason, Im in.

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loldraftingaid t1_jdxuwha wrote

I think is this probably the closest to the right take. I've been eyeing Unity for a while now - the technology is good and is a staple in the industry, but they don't seem to be able to monetize it. I think the most likely bullish case is that they are purchased/merged at some point in time at a premium.

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morg444 t1_jdxg611 wrote

Unity is a very popular game engine and will continue to do so. But that isn't exponential growth and very dependent on ad revenue.

It's a safe buy at these levels, but I don't know if it will rapidly grow

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NoobCinema75SGF t1_je16wcs wrote

Calling a horse drawn carriages a 'safe buy' 6 months after the Automobile was introduced. UE5 was revealed/launched mid last year and I haven't seen a single AAA title use another engine since.

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Chadmium1 t1_jdy2ej3 wrote

Ah yes… anytime a stock goes down for a while it’s a “bottoming process”

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FinFree4Ever t1_jdybks6 wrote

Unity is at basement prices, it’s my biggest position. They were profitable in Q4 2022 and expect to be profitable in every quarter in 2023. Most of their expenses are stock based compensation and is manageable if needed. They will certainly survive any downturn.

More than 60% of the mobile market is using Unity, and mobile gaming is growing exponentially. There are macro themes such as metaverse, AI, VR, medical and the shift to mobile.

Unity AI was launched last week, using chatgpt to create virtual worlds will be mindblowing.

Unity is a 100-200 stock easily within 2 years.

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Position_Emergency t1_je0sldq wrote

When you say Unity AI launched last week I assume you're referring to this
https://www.youtube.com/watch?v=sr5z4PQenfE

Did it not strike you as strange the video had nothing but text in it? Not a single screenshot of their new AI functionality.

The reason is they only started work on "Unity AI" last week.

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FinFree4Ever t1_je1v8so wrote

Go onto YouTube to see it in reality, it’s in beta and a call to attract developers.

If it was 100% ready, the stock price won’t be where it is today, you have to be in before the masses.

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Position_Emergency t1_je4a4t6 wrote

Link?

I assume you're actually referring to the GPT-powered plugins on the Unity asset store. There was no meaningful Unity AI project before that stupid teaser video was released.

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VisualMod t1_jdx9984 wrote

User Report
Total Submissions 2 First Seen In WSB 2 years ago
Total Comments 31 Previous Best DD
Account Age 6 years [^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.) [^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.)
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GobbledyCrook t1_jdxbvl7 wrote

It’s a weird stock, made me some money last summer when it had rumors of being acquired but not much else

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[deleted] t1_jdxs540 wrote

They all come back, dude. It's just that high growth sh*t like U pukes moar $$$ when the economy goes south, margins get compressed, frigging funds sell in despair, even insiders (look at the last buyback in U and how they've sold a sh*tload of shares since). If you say that you know some cheaplies, buy'em and don't talk to anyone.

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mazarax t1_jdxy9zr wrote

Come back?

A company that has never made a profit, ever?

A company that now has a $1B loss per year?

Ok, you do you, regard.

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[deleted] t1_jdybmdt wrote

I’m long a small % and have no conviction whatsoever other than I should be allocated in this space. If you are right, don’t miss the opportunity to short it to zero.

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FinFree4Ever t1_jdybobu wrote

They have been profitable since q4 2022 and will be profitable going forward as confirmed by their management who has a 100% guidance record.

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mazarax t1_jdyddi7 wrote

I was surprised to hear that, so I checked.

You are talking bullshit

They lost $0.3B in Q4 2022.

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Position_Emergency t1_je0zayn wrote

Yeah, he is talking bullshit.
A company $2.7B in debt tells its investors it made an EBITDA profit of $13 million dollars in a single quarter and we're supposed to think that's indicative of something resembling profitability?

Imagine what the interest payments on that debt are.
Oh, and $1 billion of the debt was taken on that very same "profitable" quarter!

Unity has no plausible roadmap for becoming profitable in the near to mid future let's be real.

I'm not saying it's a bad buy though given the insanity of the stock market...

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mazarax t1_je173ke wrote

It is amazing, that difference! What they tell shareholders, and what they file with the SEC.

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FinFree4Ever t1_jdyj616 wrote

Market has not realised it yet, since people are looking at EPS.

Unity has posted its first profitable quarter in the company's 18-year history, albeit on a non-GAAP basis. In a letter to shareholders, the company reported a non-GAAP operating profit of $13 million for the three months ended December 31, 2022.

Let me quote you the CFO’s statement on their earnings call on 22 Feb 2023: “Now what happens then is that we expect to significantly improve profitability in 2023. If you look at – we had a loss of $90 million non-GAAP in 2022 and we expect adjusted EBITDA to be about somewhere in the range of $230 million to $300 million in 2023, so very significant swing from one year to another. Now what’s interesting is in 2022, we were only profitable in Q4. In 2023, we expect obviously to be profitable every single quarter.”

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mazarax t1_jdyjdjv wrote

So, yahoo finance numbers are bogus, then?

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FinFree4Ever t1_jdyk8cn wrote

It’s all about different accounting standards. Their CFO is not lying.

Their acquisition of Iron Source is accretive, strengthens their balance sheet/cash flows and together with a recovery in advertising revenues, Unity will be extremely attractive in the coming years.

It’s a low risk, high reward play.

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mazarax t1_jdyl5gn wrote

Hmm… I am skeptical. I believe it when I see a profitable year with GAAP.

Could it be you have Stockholm syndrome, with $U being your largest holding?

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FinFree4Ever t1_jdylkli wrote

I only bought in, in the month of March 2023. It is undervalued, already non-gaap profitable and able to withstand any recession with broad macro winds in its favour.

Even if it recovers to 50% of its 2021 high, it is still a 3x from here.

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Shorter_McGavin t1_je05te6 wrote

Sounds like you are butthurt over losing some money since buying 😂. The real upside is AR applications when Apple launches their AR glasses. Keep sleeping though 💤

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Troflecopter t1_je3vj5f wrote

I'm sorry, but where did you learn the alleged principal that "they all come back"?

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FlatOutUseless t1_jdy7ed6 wrote

Unity owns Weta. It will be such a shame if it drags down one of the best special and visual effect houses.

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Thanks-Oboomer t1_jdzpnqc wrote

Their is a class action lawsuit pending with Unity over securities fraud. I'd stay away.

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Troflecopter t1_je3v85j wrote

Unreal engine is better. That's what.

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CoronaPooper t1_je3x82m wrote

Unity is for indie game devs who are usually poor. It had the reputation of being easy to learn so it attracts a lot of noobs who won’t make it. This obviously costs them money because there is a cost to serve free accounts.

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