Unity Stock Soars: Risks And Promises Of The Metaverse

Feb. 11, 2023 3:57 AM ETUnity Software Inc. (U) StockU4 Comments

Summary

  • Unity stock has performed strongly in recent weeks even amidst a broader tech recovery.
  • Management believes that it has worked past the operational headwinds it faced in 2022.
  • The company has closed its acquisition of ironSource and is projecting positive cash flow generation in 2023.
  • I discuss the stock's valuation in light of the tough macro backdrop.
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Metaverse Cyberpunk Style City With Robots Walking On Street, Neon Lighting On Building Exteriors, Flying Cars And Drones

onurdongel/iStock via Getty Images

Unity (NYSE:U) has bounced strongly off the lows but remains a mere shadow of its stock price from only a year ago. At one point, the metaverse was a hot investing topic and U stood at

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This article was written by

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Julian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways.

Julian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to add an additional layer to the conventional margin of safety. Features include: exclusive access to Julian's highest conviction picks, full stock research reports, real-time trade alerts, macro market analysis, individual industry reports, a filtered watchlist, and community chat with access to Julian 24/7. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of U, OKTA, TWLO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am long all positions in the Best of Breed Growth Stocks Portfolio.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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