Unity

U

Market cap $18.5B

George Tsilis has his eyes on Unity Software (U) as the company makes what he calls a "business pivot." He talks about how the company is moving from creative software to advertising and marketing, a move similar to Applovin (APP).

U's improving profitability and expanding tech stack contrast with RBLX's rapid growth but tightening margins in a compelling metaverse face-off.

Recently, Zacks.com users have been paying close attention to Unity Software (U). This makes it worthwhile to examine what the stock has in store.

Unity Software Inc. ( U ) Discusses Game Development Innovation and Community Achievements at Unite Event November 19, 2025 4:00 AM EST Company Participants Matthew Bromberg - CEO, President & Director Adam Smith - Senior Vice President of Product of Unity Engine Andrew Dennison Rus Scammell James Stone Russ Ketchum Ashley McKemie Rambod Kermanizadeh Felix Thé Kelly Ekins Conference Call Participants Tim Sweeney - Epic Games, Inc. Zorro Svärdendahl Tiger Woods James Seaboyer Forrest Stowe Tim Moore Naveen Mewani Presentation Matthew Bromberg CEO, President & Director [Presentation] Good morning. Good morning, Barcelona.

Unity Software Inc (NYSE:U) shares added almost 6% following the announcement of a partnership with Epic Games aimed at expanding opportunities for game developers. The collaboration allows Unity developers to publish their games within Fortnite's discovery system, giving them access to Fortnite's ecosystem of over 500 million registered accounts and its Creator Economy, which distributes hundreds of millions of dollars annually to creators.

SAN FRANCISCO & CARY, N.C.--(BUSINESS WIRE)---- $U--Unity (NYSE: U) and Epic Games today announced they are working together to bring Unity games into Fortnite, creating more opportunity and value for players and developers. Developers will have the ability to publish Unity games into Fortnite, one of the world's largest gaming ecosystems with more than 500 million registered accounts worldwide, and participate in the Fortnite Creator Economy. Also announced today at Unite, Unity's Annual Developer Co.

Unity Software is downgraded to a Hold despite the robust ad-tech/SaaS growth prospects in FY2026, attributed to the premium valuations and the pulled-forward upside potential. While Vector, Audience Hub, and new in-app purchasing capabilities may drive higher user engagement and future advertising revenue growth, much of the upside may already be priced in. U's core GameDev monetization remains strong, as observed in the expanding subscription revenue, the improved net expansion rates, and the richer free cash flows following prior restructuring.

To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.

Recently, Zacks.com users have been paying close attention to Unity Software (U). This makes it worthwhile to examine what the stock has in store.

Unity Software stock is still a good buy due to its potential for accelerating growth in 2026. New AI-powered products are near-term catalysts for the company.