Citizen’s Strategists Insists Unity Software Inc. (U) Sell-off is Overdone

Unity Software Inc. (NYSE:U) is one of the best metaverse stocks to buy, according to analysts. On March 9, Citizens reiterated a Market Outperform rating on Unity Software Inc. (NYSE:U) and a $37 price target. According to the research firm, the stock’s selloff is overdone, and the current valuation supports it as a bounce-back play.

Citizen’s Strategists Insists Unity Software Inc. (U) Sell-off is Overdone

The research firm remains bullish about Unity Software despite the company not doing much to promote its products outside of Vector. The products accounted for 56% of Q4 2025 revenue growth. On the other hand, Vector grew 70% YoY in January and has a long runway to exhibit hyper growth, especially in the Developer Data Framework.

Citizens expect Unity Software to start outperforming as its Commerce Platform is now in testing as a reliable checkout platform that competes with app stores to power in-app purchases. In addition, the research firm has downplayed concerns over artificial intelligence in the company.

According to Citizens, developers are unlikely to build their own game engines, as the company’s developer infrastructure provides the same frameworks, allowing them to focus on the differentiated gameplay aspects of their games.

Unity Software Inc. (NYSE:U) provides the foundational real-time 3D (RT3D) development platform for creating, operating, and monetizing interactive, immersive content for the metaverse. As a key enabler, Unity powers VR/AR experiences, digital twins, and virtual worlds across gaming, film, and industrial applications.

While we acknowledge the risk and potential of U as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than U and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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