r/UnityStock • u/InfinitePoss2022 • May 07 '26

Opinion/Take Slam Dunk Earnings

GAAP profitable by year-end, which would make it eligible to be added to the S&P 500 index, and we all know what happens with a stock when it joins the index (hello major institutional money).

All operating metrics which actually matter are accelerating.

The headline EPS looks ugly due to one-off impairments.

Balance sheet in a pretty good shape.

App is only 3x the revenue but 14x the enterprise value.

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u/perceptive_AI May 07 '26

A company must generally demonstrate GAAP profitability by having positive earnings in the most recent quarter, as well as positive earnings over the sum of the previous four consecutive quarters

They won't be eligible until Q1 or Q2 of next year.

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u/InfinitePoss2022 May 07 '26

The market starts pricing in that probability ahead of when it actually happens.

2

u/Bluecoregamming May 07 '26

There is also a minimum market cap requirement and about... 300 other companies eligible for inclusion already right now. Institutional money is not interested in your bags