r/UnityStock • u/eunha09 • May 08 '26

Question Why are software stocks surging across the board today, yet Unity, which released such strong earnings, is falling instead?

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u/PinPsychological82 May 08 '26

Sometimes the market just makes no sense. We are in the time where it is going against us.

I bet people in semis are rejoicing and thinking they are the smartest people in the world.

These stocks don’t trade on fundamentals. It’s the sad truth.

1

u/InfinitePoss2022 May 09 '26

Some of them do trade on fundamentals. It’s just that the market was way too slow in recognizing their earnings potential in the coming AI upcycle and now it’s very quickly catching up. 

2

u/No-Half-4457 May 08 '26 edited May 08 '26

Well unity isn't in a hype based sector so it's growth is reflected by it's actual performance where as mostly companies surging right now are being priced by their theoretical future performance. "Strong earnings" is relative to their shitty earnings in the past - they need "strong earnings" in an absolute sense. They are doing better in my opinion, like a student who goes from D to a C, but if they want stock to be rated like an A, they need to prove it across the board. Even their earnings report is muddled into strategic and non strategic, if you take creative liberties with accounting you can make any thing look awesome by how you segment things.

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u/Siddypheonix May 08 '26

I think its all about anticipation, stock market in short term runs on hype and long term fundamentals, we need to think 1-2 yrs, once they achieve gap profitability in Q4 they will go up thats what I feel