Time to BUY Unity Technologies $U? Stock Analysis with Q3 Earnings Insights!
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 Published On Dec 12, 2020

An in-depth stock analysis of Unity Technologies (NYSE:U) $U, arguably the world's most popular video game development engine and platform. The company went public during September 2020, and has already shown incredible growth even before it released it's overwhelmingly positive Q3 Earnings Report, which suggested even brighter days ahead! For growth investors, this is certainly a stock to watch, and hopefully this analysis can even provide guidance through the company's history to date, its valuation and the Total Addressable Market among other factors.

Unity is an American company based in San Francisco, California but was originally founded as Over the Edge Entertainment (OTEE) in Copenhagen, Denmark by three programmers David Helgason, Nicholas Francis and Joachim Ante.

Although now ubiquitous and thought of as one of the most in demand engines for video games and application development alike, Unity was conceived at a time when there weren't many tools available for independent game developers, and the Unreal Engine was unrivalled especially for AAA development, a mantle it still more or less holds today although Unity has certainly entered in the conversation.

Where Unity really shines, is within the mobile gaming segment in particular. As a sub-segment of the 200 billion dollar video game industry, mobile gaming actually comprises 50% of the total value (i.e. it is worth 100 billion) and it is well established that Unity dominates in mobile gaming, where it actually has an over 50% market share. Unity also owns the lion's share of the AR and VR sub-segments with a nearly 60% hold on the market, which is not currently large but could become dominant at some point in the future.

This video attempts to analyse the individual value propositions associated with Unity as a company, which comprise the fundamental reasons why it has the potential to grow INTO its high Price to Sales ratio and beyond. It digs into some of the financial metrics such as the gross margin, the QoQ and YoY comparative metrics and even a look at Unity as a takeover target by larger companies, such as Facebook.

Thanks for watching!!

Timestamps:
- Intro: 0:00
- Company Background: 0:35
- IPO and Valuation: 4:19
- Financial Analysis: 7:34
- Q3 (2020) Earnings Report: 9:46
- Total Addressable Market: 12:08
- Final Summary: 15:41
- Outro: 16:40

#Stocks #Unity #Unity #UnitySoftware #UnityTechnologies $U #Investing #VideoGameStocks #VideoGameIndustry #RobinhoodApp #RobinhoodInvesting #GrowthStocks #Growth

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The Tech Crunch article referenced throughout the video:
https://techcrunch.com/2020/09/10/how...

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