Unity Stock Could Soar as Turnaround Takes Hold
Video game engine developer Unity (NYSE: U) is a classic case of a company with incredible assets that nevertheless fumbled its way into a crisis. Unity is one of two major commercial game engines that dominate the market, along with Epic Games' Unreal Engine. There are plenty of other options, but the path of least resistance is Unity or Unreal.
Despite this dominant position, Unity has made some disastrous decisions over the past few years that have decimated the stock. First, the $4.4 billion acquisition of app monetization company ironSource failed to ignite growth in Unity's advertising business. Grow Solutions, which encompasses ads and other monetization tools for mobile games, has suffered from declining revenue in recent quarters.
Second, Unity's attempt at monetizing its customer base through fees tied to app installs was a poorly communicated mess. The company's reputation went up in flames in a matter of days, and the ordeal ultimately led to the ouster of former CEO John Riccitiello.
Source Fool.com
