We recently published an article titled Market Slump Drags Down Share Prices of These 15 Companies. In this article, we are going to take a look at where Unity Software Inc. (NYSE:U) stands against the other stocks.
Wall Street’s main indices ended this week’s trading on a bloodbath following an overall market selloff as investors shifted their capital into assets offering higher returns.
This article will delve into the factors behind the downturn and explore why each company was particularly affected.
To come up with Friday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
A software engineer coding while surrounded by the latest industry tools and technology.
Unity Software Inc. (NYSE:U)
Video games creator Unity Software was not spared from the broader market downturn, booking 5.5 percent losses on Friday to end at $22.84 apiece.
According to analysts, the downturn can be attributed to a selloff following gains in the previous trading days.
In the last 30 trading days, the company’s shares saw a 5-percent dip, from the $24.11 registered on November 29, 2024.
Year-to-date, its shares were down by 41 percent after a rough few years marked by poor decisions and big leadership changes.
Known for its game engine, the company lost its way by focusing too much on advertising and making questionable mergers, like with IronSource and Weta Digital. Things got worse with the introduction of a runtime fee that angered users and led to the CEO stepping down. New leadership under Jim Whitehurst and later Matthew Bromberg has shifted the company’s focus back to its core product: the game engine.
Overall U ranks 13th on our list of the stocks that were recently dragged down by market slump. While we acknowledge the potential of U as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than U but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.