Why Unity Software Tanked 39% This Week
Unity Software (NYSE: U) is down 38.8% this week, according to S&P Global Market Intelligence. The game engine, monetization, and digital twins platform posted solid growth for the quarter, but investors were not happy with a revenue mishap and poor guidance for the rest of the year. At one point this week, the stock was down 49.3% from last Friday's close and is now down 75% just this year.
On May 10, Unity Software released its first-quarter earnings results. Revenue grew 36% year over year to $320 million in the quarter, driven by 65% growth from the Create Solutions segment and 26% growth from the Operate Solutions segment. Create Solutions is the game engine that Unity is known for that helps developers easily build new video games for consumers, mainly focused on mobile platforms. The Operate Solutions segment has services focused on helping developers monetize their games through things like advertising.
Image source: Getty Images.
Source Fool.com
