Unity Software: Roaring Kitty's Post Sparks Stock Gains

Unity Software (U) stock has been on a roll recently, gaining nearly 30% in price week to date as of early morning Friday, according to data compiled by S&P Global Market Intelligence. While the company had little news of its own to report, an analyst's new take helped bolster investor sentiment on its business. A pundit from Morgan Stanley reiterated his overweight (read: buy) recommendation on the stock, with a $24-per-share price target. This positive sentiment, coupled with the influence of retail investor Roaring Kitty, has contributed to Unity's recent stock gains.



Roaring Kitty, also known as Keith Gill, has significantly influenced investor sentiment towards Unity Software. Gill, a retail investor, gained fame for his successful investment in GameStop (GME) and later turned his attention to Unity Software. He has been bullish on Unity, citing its strong fundamentals and growth potential. Gill's positive stance on Unity has attracted many retail investors, leading to increased interest and investment in the company. His track record of successful investments has given credibility to his analysis, further boosting investor sentiment towards Unity Software.

Unity's recent stock gains can be attributed to several factors, including the company's strong performance and the influence of Roaring Kitty. Unity's revenue grew 48% year over year in Q2, marking the company's 11th consecutive quarter of 30% or greater growth. The company's subscription-based business model carries much lower risk than the hit-and-miss business of making games, and its revenue-sharing agreements with mobile game developers and cloud-hosting services have contributed to its growth.

Roaring Kitty's positive sentiment towards Unity has also played a significant role in the company's recent stock gains. In a recent video, Roaring Kitty discussed Unity's new advertising model slated to debut in 2025 and the company's development of a neural network that will take advantage of the copious data Unity has been able to compile. These initiatives, along with the company's efforts to streamline its advertising efforts and rationalize its operations, have contributed to the company's positive momentum.

Unity's current valuation is $3.83 per share, which is up nearly 30% in price week to date. This valuation is higher than some other game engine providers, but it is justified given the company's strong performance and the influence of Roaring Kitty. Unity's stock has gained 87% since its IPO in 2020's third quarter, outperforming other video game companies such as Activision Blizzard and Take-Two Interactive. The company's subscription-based business model and revenue-sharing agreements have contributed to its growth, and its initiatives to expand its advertising model and develop a neural network have further boosted investor sentiment.

In conclusion, Unity Software's recent stock gains can be attributed to the company's strong performance and the influence of retail investor Roaring Kitty. Unity's subscription-based business model and revenue-sharing agreements have contributed to its growth, and its initiatives to expand its advertising model and develop a neural network have further boosted investor sentiment. Unity's current valuation is justified given its strong performance and the influence of Roaring Kitty, making it an attractive investment opportunity for those looking to capitalize on the company's growth potential.