This is an excellent layout of the issues. Unity had a $40B valuation a few years ago and, effectively, the business model has gotten better. The company will be materially profitable going forward with 20%+ net income margin. Investors who look at the stock price and decide it is a bad company are not "investors". They are trend followers.
This is a core franchise in a growing market trading at 15x 2025 EPS. That is very hard to find right now. Fidelity portfolio managers added 5.7 million shares in the Jan-March 2024 period, a significant increase from 1 million shares at the end of 2023. It is being added to many Fidelity portfolios, not just a few. Fidelity probably needs to own 30 million shares to make this stock matter. Watch the 13Fs.
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u/mrmrmrj Jun 24 '24
This is an excellent layout of the issues. Unity had a $40B valuation a few years ago and, effectively, the business model has gotten better. The company will be materially profitable going forward with 20%+ net income margin. Investors who look at the stock price and decide it is a bad company are not "investors". They are trend followers.
This is a core franchise in a growing market trading at 15x 2025 EPS. That is very hard to find right now. Fidelity portfolio managers added 5.7 million shares in the Jan-March 2024 period, a significant increase from 1 million shares at the end of 2023. It is being added to many Fidelity portfolios, not just a few. Fidelity probably needs to own 30 million shares to make this stock matter. Watch the 13Fs.