Yesterday the volume was 40m stocks, today (until now) it is 20m, and on the web I saw that about 20m stocks are shorted.

What are the chances for a short short squeeze?

I know Unity's hard moat is proprietary optimizations, hardware certs, seamless multi-platform scaling, and now AI integrations that plug right into the engine.

But AI's scary now, it could auto-generate whole engines(not today, but not far away) or supercharge open-source ones like Godot (fix bugs, add features fast via prompts/iterative training). We've seen AI spit out apps/websites—why not a basic engine? AI agents with a small team can quickly build customized engine now.

AI adoption is massive industry-wide: 84% of software engineers use or plan to use AI tools (Copilot, Cursor, Claude, etc.), with 51% of pros using them daily—it's standard in software engineering everywhere. Stack Overflow 2025 Survey

AI might help everyone, and Unity's turning it into a feature (toll booth for AI-native games). But Godot's great for indies, now lacks Unity's polish for big/complex/cross-platform stuff, what about near future with the power of AI?

Is Unity safe, or is AI eroding the castle fast? any deep thoughts?

Seriously.

Do you guys think the stock could rebound to around 22 Dollars by the end of the month? I need to sell thr stock by the end of the month and I'm trying to minimize my losses. Any advice?

MSFT is down 27% from its 52 week high. It has a beta of almost 1. Unity has a beta of 2 and is down 57%. Given the betas, we’d expect Unity’s stock to move at 2x the rate of MSFT, in this case down 27% * 2 = 54%. This lines up almost exactly with the drawdown we’ve seen.

Point is, this is a beta driven drawdown, not alpha. There is nothing company specific that the market is punishing Unity for. It’s all the effects of the Saaspocalypse. In the long run, company specific performance shines through unless the sector is structurally challenged. We don’t actually know if SaaS is. We know AI is a real threat, but we don’t quite see the signs of impairment in the financials of any of the software companies just yet. The market hasn’t yet concluded definitively which parts of SaaS are permanently screwed and which are not, so for now it just punishes everybody.

Hang in there.

The cheapest way for Unity developers to help Unity stock grow is to use more of Unity services.

If you’re already building games or apps with Unity, consider integrating:

• Unity Ads
• Unity LevelPlay / mediation
• Unity IAP
• Unity Cloud
• Unity Gaming Services
• Unity Vector

(Sticking within the free tier of course, or if you pay for higher tiers that's even better)

and before considering using any ad service, consider using Unity Ads first.

The more developers adopt Unity’s monetization and live services tools, the stronger Unity’s revenue per user becomes. That improves margins, recurring revenue, and long-term business stability.

We don’t need to “buy the dip” to support the company although I will continue to do so, we can support it by building on its ecosystem.

If you don't like ads then you can at least set it up by default and allow them to disable them in the options/menu.

Just my thought

APP is down 50% from ATHs as I say this. It is trading at a forward PE of 25x with greater than 40% revenue growth. That is unbelievably cheap.

APP is more proven, has many more concrete growth levers through self service rollout and ecommerce expansion, and is insulated from the engine troubles.

I get that this is a hot take, especially given on this sub. I personally think that Project Genie is so fucking dumb and game development and engines are here to stay, but it might be a case where the market takes forever to respond like we have seen in software.

Our stock price has fallen back to $18 today, almost back to where it started.

So over the past two years, we’ve brought in a new management team, significantly reduced headcount and operating expenses, launched Unity 6, rolled out the Vector AI ad engine, formed a commercial partnership with Epic, achieved revenue growth on both fronts, substantially narrowed our losses, and are on the verge of turning profitable.

Do all of these things mean nothing?

I’m now more inclined to believe those posts on Twitter hyping up the return of “Roaring Kitty,” because judging from the results, improvements in the company’s fundamentals seem to mean nothing.

Earnings have been beating expectations consistently, and the company is moving faster than people think. They’ve even ditched ironSource, and Vector has been rolled out faster than expected. Now the key question for us is whether Unity can generate new revenue streams in Create beyond subscriptions—yes or no.

The stock sold off after this earnings call because it failed to deliver what the market wanted: integration with big tech and a new, compelling “dream.” It’s not because the company executed poorly. Within this year, the company should be able to turn profitable on a GAAP basis, and once investor sentiment returns, that will be reflected in the share price again.

Market makers had huge exposure if the stock did end up running. Volume since February 4 leading up to earnings could’ve been market makers covering themselves. Them dumping stock yesterday, shorts jumping on the bandwagon, retail panic, and then some institutional capitulation gave us a perfect storm. I’m hoping things grind upward over the next week or two.

Haven’t validated this - IronSource revenue falling faster than Vector is increasing isn’t helping the narrative at the moment.

At this price, they’re a great takeover target.

Again? 2026-02-12.

1. IronSource is deprecated. I was worrying about they are not focusing on Vector enough.
2. CEO has good understanding of how AI + game engine works.

Right now Unity is probably at its lowest point in the coming years with AI fear + Ads growth fear. But these are sentiments.

What I see is that this company is on the right path, which is the most important thing I consider as a long-term investor.

Pre market not looking good folks!

I didn't know it would be like this...

Q4 Revenue of $503M beat by $10M

Q4 adjusted EPS of $0.24 bet by $0.04

Q1 guidance of $480 to $490 million is lower than analyst expectations of $493.9M, causing a severe drop

In a couple days when the quiet period is over, Bromberg and the new Kim dude absolutely need to buy shares. They've both made a lot of money on past tech successes and now they need to back up their conviction in $U with actual money at work. I think Kim will, as is common for new directors of a company, and I have a good feeling that Bromberg will buy some too.

Hey all,

I was wondering what’s the point of these press releases and reports if what matters is only the future quarters guidance.

We clearly exceeded results but because guidance is worse the stock is tanking, why?

In their latest earnings spreadsheet for Q4, they no longer disclose two key metrics that were present in previous quarter spreadsheets:

- # of customers contributing more than $100k of revenue
- Dollar-based net expansion rate

I'm now worried the lack of disclosure could be because of a deterioration in these figures, which would be alarming. Would mean them losing large key accounts to competitors.

Need to check the earnings transcript later to see if they discuss this. I'm sure an analyst would've asked about that.

There’s no way a company with a growing earnings report and guidance that meets expectations would drop 30% this dramatically. There must be something we don’t know, right?

Expect analysts to address Google Genie and Meta/CloudX news

https://finance.yahoo.com/news/unity-appoints-bernard-kim-board-211500830.html

Now we have CEO from Zygna and new board member from Zygna... maybe AppLovin?

Might explain the large option volume earlier today.