Wanted to try it out so here's my first 'analysis'! Let me know if my points are valid and if my structuring is good or not.
Firstly for some background information, $U or Unity Software Inc is primarily game engine company where although producing a relatively good game engine, has made some incredibly poor choices - such as mass layoffs and diverging from their engine to focus more on advertising, merging with Iron Source. The company peaked in value November '21 at almost $200 (USD) where the company began merging with other companies, months after the decently successful IPO - the first merger being with Weta Digital. After that peak, it was all downhill from there tumbling into the $40s over the course of two years, where Unity made gaming history by announcing the runtime fee. This lead to the regarded CEO resigning (the CEO that once ran EA, go figure) and most of management being fired, with major restructuring a few months after occurring under interim CEO Jim Whitehurst and then Matthew Bromberg, where they promised to work on what truly mattered, the engine itself.
In recent times, Unity has made great strides in their engine with massive new features on the way - promising better performance (they don't say it, but they subtly hint it in their advertising that Unity is the engine for good performance, as opposed to Unreal), and new innovative uses of that big A word that investors climax over. They announced Unity 6, their big update and reversion back to a normal naming system as opposed to their weird yearly naming scheme (which was objectively bad for pressuring new releases on a yearly schedule), and announced 6.1 with some features currently in alpha releases, and some credible promises for later big versions which they appear committed on.
Overall, they seem to be on a comeback, at least on the engine side. Financially, they've been recovering from the whole runtime debacle (around Q4-23) where the next quarter being their first missed earnings for a while, by quite a bit as well. Where only recently in Q2-24 have they started to beat the target and are on track to go above $0 per share in the next two years. In addition, as a result of the cancellation of the runtime fee and the new CEO reaching out to businesses and the community, growth has been re-sparked. Moreover, their profits from their engine have increased 5% year over year and is still going strong. In the recent Q3 earnings their total profits in EBITDA is over 10% over their initial estimate of $70-80m at $92m.
My verdict, is that the company under its new leadership has shifted its focus towards the user. They are focussing on updating their engine without hurting users using older features, and are in the testing phases of new AI technologies for both advertising (reducing ROI and boosting user acquisition + monetary gain), and game development (with two AI systems for both helping developers make games, and running AI within games for either NPCs or game systems). Thus, after a 'company reset' they seem to be on the track to make a profit and become the defacto game engine - one that won't be made fun of crappy games.
Disclaimer - this is not financial advice. I'm a game developer and I enjoy using their engine (which is how I can say the engine is getting far better in recent releases for engine users), I recently got into trading/investing and I read these analysis posts or bets, and I decided to try one out myself.
How'd I do?
Edit: MB forgor to say my position. I'm dirt poor so I put $70 in Unity at around $17usd with 5x leverage... if that means anything to u guys?