Here's 1 Hot Growth Stock Down 75% That You Should Buy Hand Over Fist
Shares of Unity Software (NYSE: U) are still down by more than 75% in 2022, but the company's third-quarter results brought a sense of relief to investors. From a starting point that was near its all-time low, the stock surged by 29% on Nov. 10 as Wall Street cheered the strong quarterly report the company released after the close on Nov. 9.
Unity, which owns the leading design engine and platform used by developers to design video games and other 3D digital content, witnessed an uptick in its growth last quarter. More importantly, management's outlook was solid, and indicates that demand for its 3D content-creation services is gaining traction in industries beyond gaming, which could unlock massive growth opportunities for the company.
Unity Software's revenue increased by 13% year over year in Q3 to $323 million, coming up short of analysts' consensus estimate of $326 million. But its top-line growth accelerated compared to the second quarter, when its revenue was up 9% year over year, suggesting that its business is shifting into a higher gear. The company's adjusted net loss of $0.14 per share, though wider than the prior-year figure of $0.03 per share, was a shade narrower than the loss of $0.15 per share that Wall Street had expected.
Source Fool.com
