What Happened?
Shares of interactive software platform Unity (NYSE: U) jumped 3.9% in the afternoon session after the stock continued to ride a wave of positive momentum following strong second-quarter results and upbeat analyst commentary from late last week.
The video game software developer recently reported second-quarter 2025 revenue and EBITDA that surpassed the high end of its own guidance. This strong performance prompted positive reactions from investment firms, and the stock reached a 52-week high.
Following the results, JMP Securities raised its price target on Unity to $35 while maintaining a Market Outperform rating. Similarly, Needham increased its price target to $40 and reiterated a Buy rating on the shares, citing the company's better-than-expected performance and strategic position. This continued positive sentiment from Wall Street appears to be sustaining investor confidence.
After the initial pop the shares cooled down to $45.27, up 3.2% from previous close.
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What Is The Market Telling Us
Unity’s shares are extremely volatile and have had 52 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 3.7% on the news that the stock reached a 52-week high after the company recently reported strong second-quarter results and received positive commentary from Wall Street analysts.
Unity is up 84.7% since the beginning of the year, and at $45.27 per share, has set a new 52-week high. Investors who bought $1,000 worth of Unity’s shares 5 years ago would now be looking at an investment worth $662.33.
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