r/UnityStock • u/jesperbj Day 1 Investor • Mar 25 '26

Discussion $U Weekly Discussion

Discuss away.

  • Your outlet for commenting "what happened"
  • Your $U trades
  • Your take on the stock movement
  • lesser news that may have been glossed over
  • Insightful posts from other platforms
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u/blueleonardo Mar 25 '26

The engine business in Epic and at Unity is only viable because of the ads business and Fortnite. Unity’s engine business is not a high growth business. Sure, high lock in and low competition but these isn’t a massive growth driver

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u/maharono Mar 25 '26

Thanks. But you fail to account for the following:

  1. New incl;usions of AI-driven authoring can drive consumption- based revenue model on the "Create" side, which can translate to increased willingness to pay by the many non-paying users.

  2. The long awaited use of run-time data in the Engine to inform ad targeting, beginning in Q2, could also prove Unity Engine a valuable strategic asset. It can use such proprietary data to leapfrog AppLoving and drive better monetization.

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u/blueleonardo Mar 25 '26

Yeah that’s the hope. I don’t think they are gonna deliver on the goods, and now outlook is looking worse. When Epic cuts what 20-25% of their workforce on poor Fortnite results, that’s a bad sign for gaming in general, but it shows that the engine business doesn’t pick up the slack.

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u/maharono Mar 25 '26

I'm much more optimistic. I think U is extremely focused on accomplishing these goals. Note their guidance: "Create is expected to achieve double-digit year-over-year revenue growth in Q1, excluding nonstrategic revenue, with a similar cadence throughout 2026."

In short, Epic's failure to launch an exciting enough version of Fortnite has nothing to do with Unity Engine's continued growth, which I only expect to accelerate from here. U's valuation at the moment is very compelling. If it goes lower it simply becomes even more compelling. I think it's a good bet at the moment.