U trade ideas
U Unity Software Options Ahead of EarningsAnalyzing the options chain and the chart patterns of U Unity Software prior to the earnings report this week,
I would consider purchasing the 27usd strike price Calls with
an expiration date of 2024-5-17,
for a premium of approximately $4.65.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Unity Software (NYSE: U) Resurrection Unity Software Inc. is an American video game software development company based in San Francisco. It was founded in Denmark in 2004 as Over the Edge Entertainment and changed its name in 2007. Unity Technologies is best known for the development of Unity, a licensed game engine used to create video games and other applications.
Unity Software's earnings report Does Not Look Good
Shares of 3D virtual reality company Unity Software (U 7.01%) plunged 12% at the open on Friday after reporting an earnings miss Thursday evening.
Heading into Q3, analysts had forecast Unity would earn $0.17 per share on $553.7 million in sales. Instead, Unity reported a $0.32 per share loss, and its sales fell short of expectations at just $544.2 million.
That sounds like bad news, and explains the steep early sell-off at Unity. On the plus side, the stock already seems to be recovering.
Unity Software sales and earnings
And yet the news wasn't all bad. As Unity Software pointed out, its revenues may have missed estimates, and "we believe we can do better." Nevertheless, Unity did still grow its sales 69% year over year, which...isn't too shabby.
Similarly, while management failed to deliver Wall Street's expected profit, it did cut its losses in half from the year-ago quarter. Net losses fell from $250 million to $125 million per generally accepted accounting principles (GAAP). And the negativity of the company's net profit margin improved significantly, from negative 77% a year ago to negative 23% this time around.
Should you buy Unity Software stock?
This means that Unity effectively flipped from burning cash to generating cash profit in Q3. And while management did not provide guidance through the end of this year, year to date, the company has generated $118 million in positive free cash flow, according to data from S&P Global Market Intelligence. If this trend continues, the company might generate as much as $157 million in free cash flow this year -- and deliver its first full year of positive free cash flow ever.
Admittedly, at a current-year valuation of more than 61 times free cash flow, the stock isn't obviously cheap. Still, analysts polled by S&P think Unity Software will double its free-cash-flow number next year, then nearly double it again in 2025 -- putting the company at about $590 million in cash generation that year.
$U - Strong reversal!NYSE:U Look at Friday's candle!
Bears thinking they will get paid got destroyed! Bulls thinking it's over and gave up got destroyed! 😂
What's next?
It is up against a resistance, the $27 resistance area. If the price can break out of that descending wedge, it can head to $36. However, $30 to $37 would be a tough point of control resistance area.
Potential upside targets:
$32
$37
Downside risk:
$24 to $22
I have calls.
UNITY SOFTWARE - GREAT OPPORTUNITYI like U, and from what i see on the chart, i have an downtrend line broken , and nou the price its in the discount zone but also in a bottom zone, if you want to be a buyer, this is the perfect entry.
I just bought some share at 27.8usd and i will buy every dip betwen 24-28.
Also in 9 November we have earnings from U , so there is another possibility for a rally form here.
Gamers against Unity (Means opportunity)The chart pattern before the move to the upside on June reminds me of PLTR, but in this case it quickly retraced back to the origin.
Fundamentals are that gamers are mad at Unity for being aggressive with their licensing fees, hurting indie game developer's earnings. Bad PR is sticky in the gaming industry so the perception of the company to the general public will remain negative for a while, whether you like that for longs or not is up to you.
$U - Can it bounce?NYSE:U On Oct 4 post, I mentioned that it has a risk of falling to $26.
It is currently trading at a critical support level. If there is a reversal in the cards this is where it needs to bounce.
The stock falls to all time low of $21.22 back in November 9, 2022 on the day of ER that marked the bottom.
Well guess what? We are in November 2023 and ER is scheduled on November 9 and stock is trading around $25!
Will it be the same this time?
I think we should see a potential bounce soon.
Upside targets:
$27
$31
$34
$36.50
Downside risk:
$24 to $21
Will be worth a shot at the potential shark completion zoneLooking here, I think unity is a great opportunity if we get to these levels. I wouldn't pass this chance up, I would at least take a small position.
This is a 786 retrace of bottom to top, and also a shark pattern
Unity : Bottom Fishing before Nov Earnings
Simple technical chart analysis and trading plan :
- accumulate at support zone $25-28 which also fall into oversold lower Midas zone . Cut loss when fall outside this support zone.
- target exit points will be at $40, $42 or upper overbought Midas zone.
*** Create simple and stress free trading plan. ***
Unity CallsTrend seems to be reversing around this demand area. Potential entry points here would be $27, $26, $25 depending on how the price behaves at each level.
Upon reversal I expect the price to hit $30 or $32 where we reconsider our position, again, depending on the price movement.
Unity - bottom formation is a processUnity CEO John Riccitiello is retiring from gaming software company after controversial pricing change. In September, Unity announced a controversial pricing change that upset developers who rely on the company’s technology to create video games.
James Whitehurst, former CEO of Red Hat, will become Unity’s interim CEO.
$U - Unity is interesting againNYSE:U Unity is interesting again. It is trading inside a descending wedge pattern and currently trading at the bottom trendline.
It can see a bounce from that trendline and head towards $35 area.
There is a risk that it could fall to $26. Going long at $26 would be safer but there is a chance that it might not get there.
Targets:
$33
$35
$44
Risk:
$26
$U: Will the angry gamers break 35?NYSE:U along with AMEX:ARKK and other growth stocks are making us a bit concerned and the recent news with Unity could have legs which may lead to a downside break of 35. We'll see if the price increases lead to a dip. Good luck everyone
levels to manage Unity long-term positionCopy & Paste from the Verge:
Unity has changed its pricing model, and game developers are pissed off:
The news was met with fear, anger, and disgust from the game development community. The primary complaint is that these changes would be particularly harmful to solo, indie, marginalized, and mobile developers.
Developers are also concerned these new fees could impact digital preservation efforts as now game makers are seemingly incentivized to delist older games so they aren’t charged for them. There’s also the question of how Unity plans on tracking installs and whether or not such tools run afoul of government privacy laws.
Unity's Controversial Business Decisions: From Stock Price DropsIn a worst-case scenario, John Riccitiello, the CEO of Unity Engine, sold shares at $40. He then made a questionable decision, announcing plans to charge customers for every new installation of their game after a certain threshold. Unity would track these installations of its software, causing the price to drop below the $30 resistance mark, reaching a low of $25. Many developers are now migrating from Unity to Unreal, citing a lack of trust in the CEO and issues with unfinished, buggy products. This could result in lower earnings for Unity by the end of 2023. However, implementing the new contract in 2024, which charges $0.20 per installation and constant new users, may boost Unity's revenue.
UNITY : Livetrade using simple TA and Band of Midas1. Clear all drawings and indicators.
2. A horizontal support line consists of 18Aug23 low and previous breakout level, observe if price reversed at here (React Don't Predict).
3. Add BandofMidas from indicators. Use Midas factor of 9.( suitable for this chart)
4. Price fall into Midas zone and reversed. Midas line still in pink. Double confirmed.
5. CONSIDER to go long, nothing 100%
6. Plan your trade, risk reward ratio. GO Long.
In my opinion, this is a news driven panic sell.
im LONG with $1 cut loss risk.
ABC/DShort interest over 8%.
Possible stop below C.
Target is D.
Small flag noted.
This pattern will usually reverse when D is met.
Resistance overhead.
No recommendation
Unity Software Inc.: The Future of Real-Time 3DUnity Software Inc. (U) is a leading provider of real-time 3D development tools. The company's platform is used by game developers, artists, architects, and other creative professionals to create interactive experiences.
Fundamental Analysis
The fundamental analysis of U stock is positive. The company is growing rapidly, and its financials are strong. U is also well-positioned to benefit from the growing demand for real-time 3D content.
Technical Analysis
The technical analysis of U stock is mixed. The stock is currently trading below its 20-day and 50-day moving averages, which are bearish signals. However, the stock is also trading near its support level of $37.00, which could provide a buying opportunity.
Overall, the fundamental analysis of U stock is positive, while the technical analysis is mixed. Investors should carefully consider both factors before making a decision about whether to buy or sell the stock.
I hope this post is helpful.
This analysis represents my thoughts at the date it is posted.
This analysis does not represent professional and/or financial advice.
You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content found on this profile before making any decisions based on such information.
Any feedback is encouraged and appreciated. Thank you and have a nice day!
U - Make or Break ????Is this consolidation??
No recommendation. Just for learning.
Open for suggestions.
Thanks
$U - Sitting on 200DMANYSE:U is currently sitting on 200DMA. MACD is about to do a bullish crossing. Both William R% and RSI are curling up. Its still early but it could be signaling a reversal. 👀
U prev resistance turned to supportU failed to continue the uptrend and been in downtrend for couple weeks , and looks like it found her support at the previous resistance .
classic pattern were resistance turns to support .
