Unity Gaming: Capturing Opportunities in a Booming Industry
Unity Gaming: Capturing Opportunities in a Booming Industry
TLDR:
Unity Software (ticker symbol: U) is a leading provider of game development tools, operating a platform for developers to create games.
The gaming industry is experiencing rapid growth, with a projected market size of $209.99 billion by 2023.
Unity has a strong market share, holding over 50% of the game engine market, which generates recurring revenue through a subscription-based model.
Unity is expanding into new markets like augmented reality (AR) and virtual reality (VR), diversifying its business and making it less susceptible to changes in the gaming industry
If you are someone who grew up playing the first NES, Sega Genesis, Playstation, Commodore 64 then you know certain games like Mario Brothers, Legend of Zelda or Tecmo Bowl have made a lasting impression on you. The graphics, the story lines, and the ageless characters remain engrained across generations of video game players.
However, if you are like me with a demanding schedule, you probably haven’t touched a console or played any games on your phone other than what your kids, nieces/nephews may want to play on your phone.
One thing that is common among yester-year’s game play and the latest generations’ console are the graphics that allow for the characters and actual game play.
As gaming gets more and more powerful and form factors get smaller and smaller this presents an opportunity to invest in the picks and shovels or the infrastructure that makes gaming unique.
Enter Unity Software (ticker symbol: U). Unity Software operates a platform that provides real-time 3D development tools and services for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. They allow for the images and characters to have motion and enable the software for that gameplay to come to life.
Unity software is trading well off its all time high of $210 and off the all time low of $21, we think this is a good opportunity to slowly add to your portfolio. Does Unity have it in them to put in another run to reach multiple gains?
Unity gaming is a platform for developers to develop their games. Unity offers tools in one centralized location, giving developers a one-stop shop platform and marketplace to deploy their games.
The gaming industry is growing rapidly. The global gaming market is expected to reach $209.99 billion by 2023, and Unity is a leading provider of game development tools. This gives the company a significant opportunity to grow its revenue as the gaming industry expands.
Unity has a strong market share. Unity is the leading game engine in the world, with over 50% of the market share. This gives the company a significant advantage over its competitors, and it allows Unity to generate recurring revenue from its subscription-based business model.
Unity is expanding into new markets. Unity is not just a game engine anymore. The company is also expanding into other areas, such as augmented reality (AR) and virtual reality (VR). This gives Unity a diversified business model, which makes it less susceptible to changes in the gaming industry.
Of course, there are also some risks associated with investing in Unity Gaming. The company is still relatively young, and it faces competition from other game engine providers. However, the overall growth of the gaming industry and Unity's strong market share make it a good investment for long-term investors.
Here are some additional factors to consider when evaluating Unity Gaming as an investment:
The company's financial performance. Unity has been growing its revenue and earnings at a rapid pace in recent years.
The company's competitive landscape. Unity faces competition from other game engine providers, such as Unreal Engine and CryEngine.
The company's strategic initiatives. Unity is investing in new areas, such as AR and VR.
The overall gaming industry is growing rapidly, which is a positive sign for Unity.
Unity is a growth stock to watch. With growth comes wide swings and multiple gains declines. Ultimately, the decision of whether or not to invest in Unity Gaming is a personal one. They say, invest in what you know. If you are a gamer and have a positive outcome within this industry, then Unity might be a name to consider.
We consider Unity a buy near the $40 price point. If it has showed any resilience like it has in the past, investors may be content with the potential double up this may bring over time.