Unity Software Stock Pulls Back Thursday: What's Going On?

Unity Software Inc U shares are pulling back 3.67% to $23.64 during Thursday's session, following a sharp rally that saw the stock climb 12.1% on Wednesday and 14.4% since the company's first-quarter earnings report on May 7.

The decline on Thursday comes despite a lack of any company-specific news, suggesting the move may be a cooling-off after recent momentum.

What To Know: Wednesday's surge was driven by strong earnings results reported in May that exceeded Wall Street expectations. Unity reported an adjusted earnings per share of 24 cents, far above forecasts for a 36 cent loss.

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Revenue came in at $435 million, beating estimates of $416.92 million, even as total revenue declined 6% year-over-year due to a portfolio restructuring.

CEO Matt Bromberg cited early traction with Unity Vector and growing demand for Unity 6 as signs of the company's strategic progress. Despite the positive results, analyst reactions were mixed, with firms like Needham and Stifel reaffirming Buy ratings but lowering their price targets, while Barclays maintained an Equal-Weight stance.

Thursday’s dip may reflect short-term profit-taking, but investor sentiment remains focused on Unity's improving profitability and long-term potential in the interactive content development space.

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How To Buy U Stock

By now you're likely curious about how to participate in the market for Unity Software — be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Unity Software, which is trading at $23.64 at publication on Thursday, $100 would buy you 4.24 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option or sell a call option at a strike price above where shares are currently trading — either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, U has a 52-week high of $30.88 and a 52-week low of $13.90.

Image: AI Generated