12 Best Stocks Under $50 to Invest In

3. Unity Software Inc. (NYSE:U)

Number of Hedge Fund Holders: 74

Unity Software Inc. (NYSE:U) is one of the best stocks under $50 to invest in. On February 13, Deutsche Bank analyst Benjamin Black reduced the firm’s price target on Unity from $45 to $30 while maintaining a Hold rating.

A day before  that, Needham lowered its price target on Unity to $35 from $50 with a Buy rating following the company’s Q4 results. The firm highlighted positive execution regarding Vector and noted double-digit sequential growth and expectations for continued momentum throughout FY26. According to the analyst, Vector remains the primary reason to own the shares and would likely cover Unity’s current enterprise value in a sum-of-the-parts valuation.

Separately, Wedbush lowered its price target on Unity Software Inc. (NYSE:U) to $30 from $37 and kept an Outperform rating. The firm noted that Unity’s decent Q4 results were overshadowed by soft Q1 2026 guidance and the persistent perceived threat from AI. Additionally, the firm highlighted a strategy shift that they believe undermines the company’s current business model structure.

Unity Software Inc. (NYSE:U) operates a platform to develop, deploy, and grow games and interactive experiences for mobile phones, PCs, consoles, and extended reality devices in the US, China, Hong Kong, Taiwan, Europe, the Middle East, Africa, the Asia Pacific, Canada, and Latin America.