Unity (NYSE: U) shares sold off over 9% on Wednesday, ahead of its earnings release after the close.
That third quarter report saw the company beat loss per share and revenue expectations. The company posted an adjusted loss per share of $0.14 on revenue of $322.9 million, topping analyst expectations of a loss of $0.15 per share on revenue of $322.02 million.
Looking ahead, Unity raised its FY22 revenue guidance to between $1.365 billion and $1.385 billion, up from $1.3 billion to $1.35 billion, while it sees fourth-quarter revenue at $425 million to $445 million, above consensus expectations of $384.82 million.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Unity shares are up around 1% premarket, but they have fallen 85% in 2022.
Still, Piper Sandler analyst Brent Bracelin sees a buying opportunity for patient investors.
The analyst cut the firm’s price target on Unity Software to $33 from $38, maintaining an Overweight rating on the stock. He explained in a research note that deteriorating gaming and advertising demand alongside the company’s completed ironSource merger has heightened investor controversy on Unity and pressured the company’s valuation.
He added that while execution risk could remain raised for the next two quarters, patient investors “could be rewarded by earnings and multiple expansion,” and he sees a buying opportunity in the stock on the ‘bad news.”
