Why Unity Software Got Clobbered 33% in April
Shares of 3D creation software suite Unity Software (NYSE: U) fell 33% in April, according to data provided by S&P Global Market Intelligence. It was an especially rough month for high-flying software tech stocks as the market overall weighed the Federal Reserve's impending interest rate hikes (higher interest reduces the present value of risk assets like stocks). For comparison, the S&P 500 was down 8.8% in April.
After the recent drubbing, Unity is now nearly 70% below its all-time high, and back to where it made its debut in public trading after its initial public offering (IPO) in 2020. Such has been investor sentiment when it comes to high-growth but richly valued tech stocks as of late. Unity's platform is expanding at a rapid pace, but value stocks in sectors like oil and energy have been in favor instead.
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Source Fool.com
