Is Unity stock worth buying under the new CEO?

By:
on May 10, 2024
Listen
  • Benchmark analyst Mike Hickey sees downside in Unity stock to $16.
  • $U reported a wider-than-expected loss for its fiscal Q1 last night.
  • Unity shares are already down over 40% for the year at writing.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Unity Software Inc (NYSE: U) has already lost more than 40% this year but a Benchmark analyst warns it could tank further in the coming months. 

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Unity stock could tank to $16

Copy link to section

Mike Hickey reiterates his “sell” rating on the video game software development company today. His $16 price target suggests another 30% downside from here. 

His recent note arrives on the heels of $U’s quarterly earnings report

The lacklustre first half increases the execution risk for the latter half of the year, raising concerns about Unity’s ability to meet its annual targets.

The New York listed firm reported an 8.0% annualised decline in its revenue and lost more on a per share basis than expected in its first financial quarter. Unity stock, therefore, is down 6.0% on Friday. 

Unity stock down on muted guidance

Copy link to section

Mike Hickey is bearish on Unity Software Inc also due to unimpressive guidance for its fiscal 2024. 

The $9.0 billion company based out of California, United States did reaffirm its full-year guidance last night but the Benchmark analyst dubbed it not sufficient since “consensus anticipated performance above the high end of the range”. 

Unity shares do not currently pay a dividend yield. So that side of its story is not particularly exciting either. 

Note that Unity Software named Matt Bromberg its chief executive this week as well. He will replace Jim Whitehurst who’s been serving as the interim CEO later this month. Bromberg has most recently served as the chief operating officer of Zynga.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

0/10
Learn more
USA Earnings Reports North America Stock Market Tech Trading Ideas World