Unity is a buy or Sell?

Disclaimer: Most of the info extracted from established news and article. 

Fundamental $Unity Software Inc.(U)$ 

Unity is a publicly-traded company that provides a software platform for creating and operating interactive 3D content. Since its founding in 2004, Unity has grown significantly and has become one of the leading companies in the gaming and interactive content industries.

According to ChatGPT as of September 2021, Unity Technologies had a P/E ratio of around 143, which is relatively high compared to the industry average. This suggests that investors have high expectations for the company's future growth and earnings potential” 

According to Zacks article “Digging into Valuation, Unity Software Inc. currently has a forward P/E ratio of 149.95. Its industry sports an average Forward P/E of 40.65, so we one might conclude that Unity Software Inc. is trading at a premium comparatively” 

Unity has been trading at a premium level in comparison to other sports industries for quite some time. Moreover, Zacks has established that this industry is ranked at 57 compared to the other 250+ industries. 

Lets take a look on the EPS of the company where Q4'2022, Unity reported -$0.824 of EPS and $450.97 mill. We are expecting that the next quarter would be -$0.05 of EPS with revenue of $477.42. This is a very good news for unity.  

As a summary of Unity company : 

Unity was founded in the city of Copenhagen in 2004 by a group of entrepreneurs who wanted to create a game engine that would be accessible to everyone. Their vision was to enable game development for anyone, regardless of their background or level of technical expertise. Today, Unity is widely known as the "make any game" engine and is especially popular among independent game developers.

According to industry statistics, more than 50% of all games across all platforms are developed using Unity. This is a testament to the flexibility and versatility of the engine, which can be used to create games for mobile devices, consoles, and desktop computers alike. Unity's popularity also extends to the field of virtual and augmented reality, where it powers 60% of all VR/AR content.

It's worth noting, however, that Unity is not the only game engine capable of creating a wide variety of games and deploying them to multiple platforms. There are other engines that can do this as well, such as Unreal Engine and GameMaker Studio. Nonetheless, Unity has distinguished itself as a leading player in the game development industry due to its user-friendly interface, robust feature set, and broad community support.

Technical

Unity Technical Analysis 

Unity is hovering around $29.48 since the huge plunge after the earnings. Basically, if this supply is broken, then we might see a huge upside to the above, with the next resistance being $31.50. These 2 points are very important to see if Unity is going to be uptrend in coming weeks. However, this stock is still in a downtrend, so please expect more selling than buying in the coming days. If a catalyst occurs, we could see significant upside for this stock until it reaches $35.

Please do your DYOR otherwise you may end up burning cash here. 

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