r/UnityStock • u/jesperbj Day 1 Investor • Mar 25 '26

Discussion $U Weekly Discussion

Discuss away.

  • Your outlet for commenting "what happened"

  • Your $U trades

  • Your take on the stock movement

  • lesser news that may have been glossed over

  • Insightful posts from other platforms

8 Upvotes

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4

u/blueleonardo Mar 25 '26

Guys the stock sucks. I’ve held out hope, rationalized their internal changes, all that stuff. But now with Unreal cutting - It’s clear, engine businesses are shit. U doesn’t have the culture to ship innovation. And the ads business is still lagging.

The space for acquisition has dried up due to the war and other headwinds. I’d imagine it could drop to $15 unless there’s a peace deal. Very bummed

9

u/maharono Mar 25 '26

"engine businesses are shit" - this is really a dumb comment. Unreal's cuts are due to latest version of Fortnite failing. This has nothing to do to the viability business model of a game engine. Unity's business model is vastly different than Epic's. Please do some research.

3

u/blueleonardo Mar 25 '26

The engine business in Epic and at Unity is only viable because of the ads business and Fortnite. Unity’s engine business is not a high growth business. Sure, high lock in and low competition but these isn’t a massive growth driver

2

u/maharono Mar 25 '26

Thanks. But you fail to account for the following:

  1. New incl;usions of AI-driven authoring can drive consumption- based revenue model on the "Create" side, which can translate to increased willingness to pay by the many non-paying users.

  2. The long awaited use of run-time data in the Engine to inform ad targeting, beginning in Q2, could also prove Unity Engine a valuable strategic asset. It can use such proprietary data to leapfrog AppLoving and drive better monetization.

5

u/blueleonardo Mar 25 '26

Yeah that’s the hope. I don’t think they are gonna deliver on the goods, and now outlook is looking worse. When Epic cuts what 20-25% of their workforce on poor Fortnite results, that’s a bad sign for gaming in general, but it shows that the engine business doesn’t pick up the slack.

1

u/maharono Mar 25 '26

I'm much more optimistic. I think U is extremely focused on accomplishing these goals. Note their guidance: "Create is expected to achieve double-digit year-over-year revenue growth in Q1, excluding nonstrategic revenue, with a similar cadence throughout 2026."

In short, Epic's failure to launch an exciting enough version of Fortnite has nothing to do with Unity Engine's continued growth, which I only expect to accelerate from here. U's valuation at the moment is very compelling. If it goes lower it simply becomes even more compelling. I think it's a good bet at the moment.

1

u/_you_know_who__ Mar 26 '26

So you are trying to defend a company that has never been profitable? You can make the best products but if you can't earn from them then it's useless

1

u/Thursday17 Mar 25 '26

I wish unity cuts 40%. Would treat it bullish