🚀 Interesting but risky opportunity at Unity Software Inc.
Unity Software Inc. $U-1.4% is a leading technology company that specializes in the development and providing game engines and tools for creating interactive 3D and 2D content. Its advanced technologies and innovations have made it a market leader, particularly in the gaming and augmented reality (AR) industries.
However, the company's shares are under tremendous pressure as the company announced its strategy to restructuring. This transformation includes divesting unprofitable segments such as professional services and re-accelerating growth through new product development and partner distribution strategies. Unity plans to complete this transformation by the end of the year 2024which opens up an exciting outlook for 2025.
🔍 Key indicators for 2025:
EV/GP: 3.8x
FCF: 17x
EBITDA: 16x
Unity ranks among the leaders in the game engine market, which, thanks to its expansion Metaverse has seen tremendous growth.
Augmented Reality (AR) market: expected to grow at a CAGR of 2.5% through 203050 % CAGR to reach a value of over $1 trillion by 2030.
Unity is a major player in the video game industry, providing key tools for creating AR/VR 🎮
Partnership with Apple $AAPL+3.1%: This partnership opens up huge opportunities forUnity developers in AR/VR and brings these technologies to a wider audience. 🍏🔍
Management has been through a challenging period in recent years, but has spent the last 8 months restructuring and improving profitability, shedding unprofitable segments and reducing the employee compensation ratio to 33 % of revenue.
What is your view on such investments/speculations when you foresee a major turnaround in the company?
Also, do you have any companies in your portfolio where you expect a large appreciation?
Their titles have been interesting, not much lately,. you can really see it in the stock, still falling to new lows and it looks pretty black from looking at the chart. No way, they're still in the red...
Agreed, it can be interesting, but it's a risk. It's not for me. It's hard to say where I expect any great appreciation, but currently I trust $ASML+0.6% the most.