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Unity: Plunged More Than 30% Recently - But Here's Why I Turned Bullish (Rating Upgrade) [Seeking Alpha]

Unity Software Inc. (U) 
Company Research Source: Seeking Alpha
Sundry PhotographyI updated Unity Software Inc. (NYSE:June 2023 updateits recent AI hype and the optimism surrounding its partnership with Apple (AAPL) and Meta Platforms (META).With Unity's dominant leadership in real-time 3D or RT3D, I assessed that the company is well-positioned to benefit from the possible shift in computing platform toward mixed reality. However, the platform economics are still nascent and developing. In its second-quarter orFQ2 earnings conferenceMy June caution panned out as investors who sat out trying to catch itsmomentum surge avoided the steep decline as U topped out in July 2023. Accordingly, U formed a bull trap (false upside breakout), ensnaring late buyers anticipating a further surge. I urged investors in my June update to be wary about its price action. Despite that, I highlighted my conviction that it "would not likely fall back toward its May lows, which should support my thesis that U is in the earlier stages of recovering its upward bias."Accordi Show less Read more
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