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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
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1

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.

30

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

1

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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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

5

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.

7

[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.

1

HoosierGuy2014 t1_jdxukb2 wrote

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

8

loldraftingaid t1_jdxuwha wrote

Replying to mazarax (#2,403,708)

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.

1

Chadmium1 t1_jdy2ej3 wrote

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

4

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.

1

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.

3

[deleted] t1_jdybmdt wrote

Replying to mazarax (#2,404,794)

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.

1

FinFree4Ever t1_jdyj616 wrote

Replying to mazarax (#2,407,166)

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.”

1

FinFree4Ever t1_jdyk8cn wrote

Replying to mazarax (#2,407,998)

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.

2

FinFree4Ever t1_jdylkli wrote

Replying to mazarax (#2,408,268)

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.

1

Extra-Season-4141 t1_jdyy2nn wrote

Replying to mazarax (#2,410,162)

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.

1

Thanks-Oboomer t1_jdzpnqc wrote

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

1

Position_Emergency t1_je0zayn wrote

Replying to mazarax (#2,407,166)

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...

2

NoobCinema75SGF t1_je16wcs wrote

Replying to morg444 (#2,401,989)

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.

1

NoobCinema75SGF t1_je17hog wrote

Replying to onetapsfordays (#2,404,659)

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.

2

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.

1