Why Unity Software Inc. (U) Surged On Friday

We recently published a list of Investors Rushed Into These 10 Stocks Today. In this article, we are going to take a look at where Unity Software Inc. (NYSE:U) stands against other Friday’s best-performing.

Unity Software grew its share prices by 9.72 percent on Friday to close at $26.08 apiece as investor optimism was fueled by bullish outlooks from analysts.

On Friday, Morgan Stanley raised its price target for Unity Software Inc. (NYSE:U) to $15 from $12 previously, while reaffirming its Equalweight rating for the stock.

The revision was based on the company’s upgraded outlook for this year and the next, spurred by its strong first-quarter earnings performance.

Another investment firm, Jefferies, raised its stock recommendation for the company to “buy” from “hold” previously, with a price target of $29.

Why Unity Software Inc. (U) Surged On Friday

A software engineer coding while surrounded by the latest industry tools and technology.

According to the company, the adjustment was based on expectations of enhanced revenue growth from its improved Vector ad model.

In recent news, Unity Software Inc. (NYSE:U) narrowed its net loss by 73 percent in the first quarter of the year to $77.9 million from the $291.5 million registered in the same period last year, while revenues declined by 5.4 percent to $435 million from $460 million year-on-year on the back of lower revenues from its core businesses.

For the second quarter of the year, Unity Software Inc. (NYSE:U) said that it is targeting to hit revenues between $415 million and $425 million, as well as adjusted EBITDA of $70 million to $75 million.

Overall, U ranks 4th on our list of Friday’s best-performing. While we acknowledge the potential of U, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than U and that has 10,000x upside potential, check out our report about this cheapest AI stock.

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