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Unity (U) Well Positioned for Ad Network Market Share Boost

Unity Software (NYSE:U) is one of the 12 oversold software stocks to invest in.

On February 12, Wells Fargo analyst Alec Brondolo maintained his Overweight rating on Unity Software (NYSE:U), while reducing the price target from $54 to $38. The adjustment still results in an upside potential of more than 103%.

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Brondolo noted that the recent financial results were dragged down by weak performance in the company’s Ironsource division and seasonality in the Create business that was higher than previously anticipated. However, these factors do not overshadow the analyst’s optimism amid runtime data that is expected to boost its Ad Network market share.

On February 12, Goldman Sachs analyst Eric Sheridan reiterated his Neutral rating on Unity Software (NYSE:U). The analyst also lowered the price target from $47 to $27, implying more than 44% upside.

Sheridan reflected on the company’s fourth-quarter results, which exceeded revenue and adjusted EBITDA estimates. However, the first-quarter guidance fell below prior expectations, pointing to short-term hurdles. Despite the near-term challenges, management is strategizing revenue and margin growth for game creation, distribution, and in-game monetization. The company is also looking to tap into opportunities within the China-based ecosystem.

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 for user engagement and monetization of content.

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.

READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.

Disclosure: None. This article is originally published at Insider Monkey.

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Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 140 Metas
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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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