How Unity Software Could Build the Future of Entertainment (U Stock)

[@TickerSymbolYOU]

What do you think about Ticker Symbol U? 🤩

[@druiz012]

Well... I liked it at $120 so safe to say I really like it at $40. Haha

[@druiz012]

Though the ad data problem is concerning. Hopefully they resolve it quickly.

[@mikemcc1156]

I love your content and do diligence.

[@matteopremoli9552]

I love U. But is a one way love. I bought it when it was 144, and continued buying during the dip. Now it's 38 and I'm crying while I'm still buying. Throwing money in the fireplace...

[@rftulak]

Unity was a documentary ! Very well done! Thank you!

[@TomNashTV]

your videos are so good, I'm jealous.

[@hcpirate]

Alex is a champ in presenting the data behind a stock and to explain it in layman's terms.

[@Jerseygirlinberkeley1]

Your videos aren’t too shabby. I’m a fan of you both.

[@Anklespank]

Are you jealous of his stock picking results as well or just his videos? 😏

[@TickerSymbolYOU]

Your videos are fast and funny. I'm jealous!

[@TheCebulon]

Awesome content. I love that you moved away from being soly ARK focused. Stopped watching that long ago. But now - man! These are gems! Great content with awesome background and insights. Keep on going!

[@TickerSymbolYOU]

Thanks so much, Thomas! Glad you're enjoying the new style.

[@iCanFlyWatchMe]

Thank you for this analysis of U! I bought just because it seemed good but it’s gone down since then and now I have decided to hold

[@lucianocoppola1953]

U can easily rebound back to the $70-$80 range this year. August 8th are the earnings. Any positive news will propel it back. Great company to buy now and hold. Also FB or others can try to buy them out.

[@aleydrus8067]

Or it could gone down some more to $10 and stay there which is what it probably will do.

[@kerryconnelly6697]

Not if rates keep going up…

[@zwriter3658]

I feel U is approaching relative fair market value, I don't like debt/equity at .72 and Gaming is an extremely competitive arena but with some positive free cashflow .. it may get interesting from here

[@tcthio336]

Thank you. Good analysis and I have similar assessment on the fundamental business and revenue model of Unity that create an unique moat. While NVDA could pose a challenge, the focus is to build full compute and software stack capability to enable platforms and endusers. Hence expect NVDA to focus on upstream than downstream. MSFT is a competitor to other game companies to become ubiquitous platform providers like Unity or Unreal Engine. I am excited about the lateral application in other industries such as Architecture, engineering, medical etc… this jive with NVDA digital twin concept in which both have their own edge to contribute to the end products. However, the current stock price does reflect the financial state of the company ability to generate FCF and improve Cash to Debt ratio. The recent Ironsource merger has financial benefit in that Ironsource has ~$400M cash net of debt. That will improve the balance sheet of Unity upon merger.

[@finmathsci3052]

I have two problems with Unity. 1. I want to see some profitability before I buy their stock. If I buy now, it feels more like gambling than investing. Their stock is sinking continuously. 2. I want to see the end of the global bear market period. With the possibility of the world being divided into isolated macro zones (due to the undeclared war between Russia and the EU/Britain/US on one side and the war between China and the US on the other hand), which is not related to Unity itself, but this will affect every investment decision I'd make, since the markets may sink even further. In this case, I'd rather invest in the food/consumer goods market until the dust settles down a bit.

[@dlalleman3874]

Be greedy when other people are fearful.

[@alitomr1979]

The problem is a 12 billion dollars valuation for a company burning cash and selling 1.2billion. I don’t need to see much more. How much will they go up? How many similar companies will be able to reach 100 billion dollars valuation? When? Unity might be a terrific company, but at current valuation seems like a terrible to mediocre investment. I am sharing this with the intent of receiving counter arguments, in order to learn. Great content as usual. Keep it up.

[@davidmatthias9481]

I have a small position in U and really appreciate this analysis. But I'd love to your take on VUZI, as well.

[@TheIvyLens]

I have Microsoft, Apple, and NVidia. Not worried if Unity fails, it’s my “gaming” and “vr” stock, better play than the No dividend Meta.

[@nellyfrittata8319]

Throw some Tencent in there

[@TheIvyLens]

@@nellyfrittata8319 investing in a China is putting faith in the Chinese government and their regulators, I’ll pass. Not to mention they banned crypto, albeit allowing the US to take first place which is better for our economy, showing that the Chinese government is willing to do anything to have control of the technology that their government/people use.

[@nellyfrittata8319]

@@TheIvyLens my take. Unreal Engine is better than Unity. China is top heavy with regulation, but they will not cut off the branch they sit on. Chinese stocks are incredibly cheap in comparison to US equities, and the macro outlook shows China's economy surpassing the US this decade.

[@rftulak]

I looked in the illustrated dictionary for "excellent" and "communicator" and damn if your picture wasn't shown in both entries!! ;-)

[@TickerSymbolYOU]

You're too kind! Sorry for just seeing this; I was on travel the last 10 days.

[@phvaessen]

Unity software down 78% since novembre high - below IPO. Good time to buy ? Excellent analysis, but financial data is scaring me. The company has Cash From Operations (TTM) of $-111.45M while the Information Technology sector median is $87.74M. Operating income ($528M) against total revenue of $1196M, excessive losses accumulating and accelerating. Access to cash with increasing interest rates could become a real thread to their future development. Long term debt is already extremely high $1704M against total cash and short term investments $1809M. Excessive goodwill $1667 and other intangibles $789 for a total assets of $4947M. Uity has a strong MOAT but will it stand against Nvidia, Microsoft, Facebook and other metaverse players ?

[@santiagopuyol6838]

You're right,irrespective of the ups & down,you might be lucky how it may turn out for you,investment success differs,sometimes market analysis don't help,take the risk,nothing comes easy,but what you can afford to loose, For me,am still into digital trading of crypto,some are afraid due to its decrease in price,but it doesn't affect me,because I don't buy to hold,day to day trading is the secret behind it.

[@heelspurs]

Nvidia, Microsoft, and facebook depend on Unity as much as unity depends on them. MS does their cloud service. 70% of FB money on Oculus is on Unity games. You can't run a lot of Unity-produced games without NVIDIA.

[@rks1079]

Sounds like the the Ginkgo bioworks of gaming

[@FarangWithAChang]

Every time I hear about Peter Jackson, I think of the 1990's horror masterpiece Dead Alive rather than LOTR.

[@dang4937]

Great video. +1 U does a lot more than just gaming

[@MikiCab1]

WTF? When did you start making Teasers?

[@TickerSymbolYOU]

Just trying new stuff!

[@MikiCab1]

@@TickerSymbolYOU Its all good

[@DanFitz777]

Unity has little competition - basically just Unreal, and Unity is much better than Unreal (IMO as an engineer that's tried to use both) as a platform for multiplatform XR. Most importantly, Unity can become the default platform for spatial IoT and robotics, which no one is thinking about (except Unity).

[@kristinahill2641]

I luv listening to you. I swear you are so interesting. Thanks so much for being so clear and focused during your delivery.

[@TickerSymbolYOU]

I'm so glad! Thanks for the kind words.

[@adrianfonseca]

What do you think of Matterport?

[@NewYorkCityRobocab]

Thank you, did such a great job I’m about to check out the rest of your library ☕️☕️

[@swamykatragadda8661]

do unity & adobe software' inter changeable for developers?

[@kermitmckenzie]

This is the number one stock I need info on. Thank you Alex.

[@TickerSymbolYOU]

Let's see if this video helps!

[@stephengalea9447]

Thanks Alex. I'll pin this video to my research notes.

[@heliheli6808]

Whats 400% related to?

[@knightdive1]

$9 movie tickets! Double to lmost triple that around here

[@xwwxdd]

What's the BGM starts from 15:24？ Thanks!

[@2beJT]

1:23.. uhh, if I am buying an album I sure plan to listen to it more than once.

[@brentr3164]

What do you think of U's stock purchase of IS; short-term drawdown of price?

[@jcd3869]

Hi Alex. Nice work. What do you think of the Ironsource merger? Media all saying the paid $4.4B but that is wrong. It was an all stock deal and since the stocks went down so much only paid $2.2B for it!!! And as part we bought $1B in free cash flow next year $440M this year. Exactly what we needed in rate rising envirnment. Cheers and that is why the stock popped even after a weak qtr.

[@druiz012]

Love you for the big picture Brian does a great job breaking down Financials. Glad to see you watch him. I feel like their are just a handful of KZbinrs that do really high value work and you and Brian are definitely on that list!

[@scionax541]

I've posted about Unreal here before (long time game dev), and thought many of your points were really solid. Their [current] dominance in mobile, for example, is meaningful. But unless Unity can find a way to compete with the new dev tooling that Unreal has, I still disagree with Ark's position here. I just can't imagine any major dev studio starting a new project in Unity if the heads are actually competent enough to understand the advantages of Nanite, shared world building, and all their other new time-saving tools. Even if you don't count the performance advantages because some companies won't care (mobile games, etc), it saves so much development time and money that it would be insane to not use it. I would suspect over 50% of the dev time will be saved from UE5 as the ecosystems stand now. It's nearly brand new, so the shockwave of its introduction won't be felt for many existing projects, but I absolutely would expect it to dominate in the near future. That said, maybe Unity will find a way to build competitive tools into its existing ecosystem in a meaningful time frame. And maybe (MAAAAYBE) the people running AAA studios are so detached from reality that they won't even understand the benefits of UE5 well enough to introduce them in their new games... but I wouldn't count on it. I suspect Unreal reps are making sure they know quite well, and that's likely to dig into the market share quite handily. Unity really needs to get a response to UE5 though, because without that, I personally see way too much risk.

[@formica.]

Thanks for the counterpoint. Also TIL Epic owns Unreal Engine, Epic is private, and Tencent owns 40% of Epic.

[@robbiero368]

Don't forget Unity recently purchased Weta though, I don't think we've seen even the tip of the iceberg of what that entails

[@scionax541]

@@robbiero368 It's definitely got some potential for tooling FX, no doubt. But I don't think it's really going to improve dev time spent all that much, which is where the heart of Nanite and UE5's other systems really come into play.

[@robbiero368]

@@scionax541 Unity and Unreal do serve quite different markets though, not sure how useful nanite is for mobile and casual Web gaming. Weta also have a massive asset catalogue, so interested to see how they leverage that, it's not all about fx. I think both companies continue to do great and both make great software. Excited to see where they go, don't believe it's a winner takes all, or even winner takes most. Having said all that still not convinced on the Unity business model until they hit profit, so not investing yet personally

[@heelspurs]

Have you developed for mobile? Are you familiar with Unity tools?

[@WyattCounterman]

Excited to see this video! I love Unity. I will admit I sold my U position during the metaverse hype when it felt a bit overhyped around $180 and thankful I did. However I just bought back at $39 and I think that’s a complete steal of a price! I think Unity has an incredibly exciting future. AR is already starting to creep into our lives in so many ways. Thanks Alex! PS: I’m still curious to hear your thoughts on UPST, especially after the massacre on its share price…!

[@kingsleychan]

You are a genius. I got lost in the meta hype and didn't sell Now bag holding hard.

[@WyattCounterman]

@@kingsleychan oh dude trust me I'm not a genius, this was pretty much my one and only good play last year haha. I'm bag holding TDOC and UPST with a $100 basis lol. I think U will improve nicely over the next couple years! Fingers crossed for you! and me now... lol

[@kingsleychan]

@@WyattCounterman oh =( fingers crossed for both of us indeed. I got so many bags as well. Hah it's sad when some are down 90%, I stupidly bought this company called sos, of course at the peak. Haha good luck out there!

[@bardoomguy]

I'd be a bit nervous holding this, given the development in Unreal these past years

[@ishish8816]

Watching the youtuber _@reubs_ remaking "Simpsons Hit & Run" basically on his own with Unreal Engine. Software looks insane.

[@dlalleman3874]

I work in gamedev, I can tell you that Unity is the competitive player when it comes to mobile and VR. And this is where most of the money is made, don't get me wrong UE is super powerful and I love using it daily.

[@vivianpineda7645]

Such a great informative video! Great job 👏

[@neel-uronchondi9339]

My biggest holding is Unity n Nvda!

[@user-bs8ku6cg9f]

down today huh?

[@michaelhanna6783]

I think MSFT is going to buy Unity. They have integrate it within Visual Studio development IDE ..

[@cory_aqua]

U just got Ironsource

[@aresera22]

Best intro ever

[@hclapton2128]

Any thoughts on Berkshire Grey? BGRY

[@user-lo4er8wy9l]

fantastic, great info to consider.

[@ChorleyCakeSwap]

Great analysis and presentation, thanks Alex.

[@TickerSymbolYOU]

Glad you liked it!

[@cliffpeebles9705]

Great job pointing out the bear and bull case for Unity. Alex, how do we get you on CNBC?

[@jimformermilkman]

Another stellar video!! Thanks Cheers!!

[@seekingbuddha8558]

Great collection of statistics puts together the compelling case for a presentation. Wonderful channel.

[@markdoddridge]

The value I get from this channel is mind blowing, What would it take to get daily posts? If you get to a few million subscribers is it realistic to hire crew to do all the editing so you can just research, write a script, and record a voiceover? Is it realistic to be able to research and draft a monologue of this quality every day? I would love to have a dozen different creators posting well thought out and super insightful content like this to satisfy my demand for deep dives into the hundreds of stocks out there. Super excited to watch your channel grow over the years and I figure the best way to see more content like this is to like every video and post a comment. Everyone else should be doing the same, let’s get this channel blasted all over KZbin

[@dunyawatkriedtharumal9358]

i agree with you that deep dive is amazing, but i disagree with the idea of daily video or even weekly. great idea takes time to developed, so rushing it wont do us any good.

[@art2nft886]

Alex...great call to action...I am a FirstResponder working right now....but, if I can't make the live one for sure I watch as soon as possible.

[@TickerSymbolYOU]

Trust me -- what you're doing is MUCH more important. Thank you for your bravery.

[@lostinbkk555]

#HatTip Well done for recommending someone else video and not only your own at the end. Shows what a great guy are Alex and why it's so good to subscribe to this channel

[@lagflu]

I’m still early in the video to know if you touch on it, but companies like unity have a massive opportunity to help bridge the gap in the future of the meta verse. They could be key to making assets going cross platform with little effort.

[@edmondprice6215]

Who is their biggest competitor??

[@TickerSymbolYOU]

Unreal Engine by Epic Games (which isn't publicly traded)

[@gautam3305]

epic games is half owned by Tencent

[@saistark6899]

Good storytelling mate

[@rftghyjukiol]

This was a TRULY AMAZING VIDEO!

[@TickerSymbolYOU]

I'm glad you enjoyed it!

[@whirlpoolbook6730]

Beautiful introduction. U is in my watch list. Too many nice stocks on sale now.

[@johntaylor2683]

A facinating and interesting company, an excellent review and no sugar coating downsides. Kudos.

[@Kindafu]

yeah great future. i’ve got a $22 price target. sold several put contracts between $20-25 for late this year.

[@stevenblacker1700]

Why stop at $22, how about 12. I mean good companies with proprietary tech never rebound, right?

[@fearad10]

I had this in my watch list and its a great company in gaming space and more

[@Swag100Tv]

Very Good (Informative)

[@josephspinella8345]

Alex, Thank You

[@mattimalistic]

High impact, info rich video Alex! Great work from you both 👏👏👏👏

[@TickerSymbolYOU]

Glad you enjoyed it!

[@mattgin6076]

You def look like a brilliant person to me, but man, it feels like you cant find your way without Ark...

[@Anklespank]

What are you talking about?? He HODLed Palantir after ARK dumped them completely at $23 or whatever...so there, he found his own way 👍

[@bigturntables]

Apple just crowned Unity king

[@florinserbabh4560]

Great video! Thanks. Any thought on uipath earnings next week? Im so nervous and dont know if i should add more on tuesday? Thanks a lot

[@markriley5931]

Taking advantage of this unfortunate mishap. I think management recognized and will fix the problem, but it will be expensive. Buying as much as possible.

[@matteopremoli9552]

What about now !?

[@terencelim9889]

Good morning Alex!!

[@kennylim5773]

Thank you Alex. Your videos are the first ones I watch when I get new alerts! They are straightforward and sufficiently detailed. Keep it going!

[@TickerSymbolYOU]

Glad you like them! Thanks for the kind feedback.

[@tombo45]

I have not looked at your story, but do you look at the financials at all? I do not know this company, but the financials look really bad.

[@TickerSymbolYOU]

I'm here to tell you about the technology. You can find dozens of videos covering Unity's financials already (including the ones I link at the end).

[@HipHopMovieNews]

Very good breakdown.

[@chinedumnnamdi3275]

Great video...I love how you broke down the business

[@TickerSymbolYOU]

Glad you liked it!

[@pwells10]

I bought unity for the first time Monday and proceeded to immediately lose 13% lol... so I bought a little more Tuesday. I think the valuation is making sense and the growth potential is exciting for the next decade.

[@smithbenson9454]

13% lol

[@mcashy6535]

@@smithbenson9454 haha

[@sarac3160]

That trailer. Amazing 🤩

[@Jordy74269]

Great video! Does Unity compete with Nvidia, with omniverse? Or are they working in different sectors? And which do you think is better if you compare them?

[@dilish1707]

unique spin. nice

[@vicjay1972]

The album analogy is not a good one. A great album can give hundreds of hours of pure joy

[@TickerSymbolYOU]

True. I thought about that a lot, but ultimately you're talking about "replayability" and I'm talking about first time through. Games also have high replayability, so it's really only not a fair comparison for movies.

[@ishish8816]

The analogy is perfectly fine. The average person is not playing the same album everyday for several months like they do with games. People very rarely listen to every song on one album. Games come with updates and have better "replayability". You can complete it alone, with friends or online, they can be utilised by gamers to make content on Twitch/ youtube. It's a completely different experience.

[@NISHUGARVU]

Hey Would you like to analyse some space stocks like Rocket lab, Astra space etc. And Do you think we should buy these stocks now or should wait for further details.

[@pablopipipopo]

Great! Just read a piece by Beth Kindig on Unity. She sees a good opportunity here.

[@chrisveer9174]

Great video. Great content. 👍

[@TickerSymbolYOU]

Glad you enjoyed it!

[@wolfster2287]

Great video. I have had U on my watchlist for the past two months. Do you think they will get involved in the metaverse as well?

[@Kig_Ama]

I did a dcf, fair value of unity is 16 usd.

[@chrisf1600]

Using what discount rate ?

[@TickerSymbolYOU]

(this is why you don't do DCFs on companies pre-FCF)

[@Kig_Ama]

@@TickerSymbolYOU I used a monte carlo simulation and calculated a median for the fair value, its a much better approach than just relying on story telling, my grandma is a great story teller.

[@gabem.9028]

🔥

[@robnorman3530]

Unity should buy MTTR!

[@MM-sg5cu]

Excellent content, as alsways! Thank you.

[@TickerSymbolYOU]

Glad you enjoyed it!

[@mackenziemoyer9180]

I bought at $80 and sold at $160. The bloodbath took everything down after that…maybe it’s time to jump back into Unity.

[@TickerSymbolYOU]

Awesome job on the 2X! 🙌

[@mackenziemoyer9180]

@@TickerSymbolYOU thanks dude! Too bad I didn’t sell everything else right then too 😂

[@HepCatJack]

How do you get to 140% customer retention rate ? Do some customers split into two like bacteria ?

[@TickerSymbolYOU]

No. Your customers spend $1.40 with you this year for every $1 they spent last year.

[@jakejake7289]

Great, informative post!

[@ShinkaTV]

Unity is cool, although Unreal engine is pretty fantastic. Software like this is a tricky moat to calculate.

[@Cdictator]

Can you also talk about the management along with a business

[@art2nft886]

Alright ..able to watched actually listening when I was driving back home. Umpressive STOCK/Company... so far one question pop up: choosing this stock with symbol U what % of your decision was because of Thicker Symbol You?🤔

[@mikemcc1156]

I've been torn between designers like this and just buying the Microsoft for the future in meta space and gaming as a hole. Thanks for the deep dive

[@yangboyi0608]

Unity is a great company, but people just don't buy this story anymore, sad

[@stevenblacker1700]

You sure about that?

[@guyredares]

this was great

[@snoopanoop7705]

Keep up the awesome content

[@WhoCares..808]

Great insight! Thanks!

[@marval4234]

mobile everything = Qualcomm ... Alex you are missing a big point here

[@TickerSymbolYOU]

Huh? This is a video about Unity Software.

[@jimmylabuguen2393]

Aloha Bradda I’d like advise for my grandson’s future. He will be graduating from high school next May. Where can he study about coding, engineering, for gaming. Why I’m trying to say is how or where can he begin to be involved with this industry. Mahalo Alex

[@jimmylabuguen2393]

WTF you can’t answer me

[@jimmylabuguen2393]

Another fake actor

[@jimmylabuguen2393]

Just another Democrat

[@jimmylabuguen2393]

Should of know-since you would do…Woods

[@jimmylabuguen2393]

She probably goes down on you

[@claradidi7573]

Investing in stocks is not like putting your money in a savings account that pays 10% annualy. Returns will fluctuate from year to year, some times dramatically. The 10% return is only an average of some bang up years and some gut wrenching years.

[@rogerdonaldfluri3041]

Alex, this was the best epoisode you ever made, can you do a similar one on coinbase which is in my eyes a complete failure after speaking to the binance founder a year ago wher e he explained why coinbase is worth nothing and he has 70% global marketshare, second Tesla all european research co's and analyst have a sell on the co for month and only some American analysts without a global approach are still positive, cant wait for your honest and indept analysis and please dont start wirh CW take she has been wrong on coinbase since the beginning, thank you

[@EazyE11]

Now they're laying people off. I also don't like that it's headed by former EA CEO.

[@zacharyzoet3046]

Dang. I prefer reading literature to games. Have you read "A Flower for Emily", by William Faulkner?! Oh man, so good. 😅

[@tibsyy895]

Dude! It's 9,5P/S ratio still @ $38! Haha! No thanks! I would buy it when it reaches $4! Still a lot of hot air in it!

[@josephmx72]

Hi Alex, Normally you give decent advise on stocks and ETFs. But after having lost more than 50% of my stock value in U, I am now putting in an order to sell all my U stock and invest in more promising growth stocks. Why don’t you run a video acknowledging when YOU make a mistake, like recommending U, and advise your subscribers (such as myself) to sell their losers, take their lumps, and move on to making better investments? Or are you still at the stage of your investment experience and acumen where YOU only know how to BUY but lack the iron stomach and discipline of a real investor to SELL your losers and move on? If you really want to provide useful service to your subscribers, how about dispensing some tough love advise on investing with LESS fast-talking, sugar-coated salesmanship which seems to be your trademark these days. BTW, I do like your YOU channel and take your advise and comments seriously when making investments. Best, Joe

[@TickerSymbolYOU]

Hi Joe, I appreciate your candid feedback. The company is doing amazing and its stock is largely affected by macro headwinds, NOT internal business. Selling $U would be an absolute mistake right now in my opinion. I'm not selling this one and wouldn't recommend doing that to anyone, sorry. Cheers and thanks for your support Alex

[@paulperole]

lol. you're the only one to blame for your decisions, Joseph. it's your responsibility to do due diligence and check out the company's stats. I too lost 60% on multiple positions - it happened cuz I suck, not because of Alex. cheers

[@cliffpeebles9705]

@@TickerSymbolYOU Good thing Joe isn't advising Cathy Wood. I would be in even worse shape. I think Joe may be making an emotional decision. We can't control markets, but we can try to control our emotions. It is not easy in a bear market.

[@josephmx72]

@@TickerSymbolYOU Hi Alex, Thank you for your reply about U stock. Can I save drafts of my response to you here? Or do I have to complete my post in one shot? Thanks, JosephM