10 Beaten-Down Technology Stocks That Could Bounce Back in 2026

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5. Unity Software (NYSE:U)

Unity Software (NYSE:U) is one of the 10 beaten-down technology stocks that could bounce back in 2026.

On February 12, the price target for Unity Software (NYSE:U) was decreased from $54 to $38 by Wells Fargo. The firm maintained an Overweight rating on the stock, yielding more than 94% upside potential for investors.

The firm attributed the reduction in the company’s fourth quarter earnings per share and Q1 guidance to deteriorating IronSource performance and a significant seasonality effect on the Create segment. Despite these disappointments, the firm’s core thesis remains intact, citing runtime data as a primary driver for future Unity Ad Network market share gains.

On February 12, Goldman Sachs maintained its Neutral rating on Unity Software (NYSE:U), while reducing the stock’s price target from $47 to $27. Goldman Sachs noted that Unity delivered fourth-quarter results ahead of revenue and adjusted earnings expectations, though first-quarter guidance fell short of prior estimates due to short-term pressures.

Management emphasized solid traction in its Vector platform, steady performance in Create, and a continued long-term focus on driving revenue growth and improving profitability across its gaming and monetization ecosystem, including opportunities tied to China.

Unity Software (NYSE:U) offers tools for developing interactive real-time 2D and 3D content for mobile phones, personal computers, consoles, and extended reality devices. The company helps developers across the overall development lifecycle through its AI-enabled platform. Other offerings include Create Solutions and Grow Solutions to support user engagement and monetize content.

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