Unity Software Inc. (NYSE:YOU) belongs to the 10 Best Meme Stocks to Buy Right Now. The company’s shares fell this week after it issued a weak first-quarter revenue forecast.
During its Q4 2025 earnings call on Feb. 11, the video game engine maker reported a 10% increase in quarterly revenue to $503 million, led by strong growth in Unity Vector. Diluted net loss per share was $0.21 compared to $0.30 in the same period last year.
The company said it expects revenue of between $480 million and $490 million for the first quarter of fiscal 2026, leaving investors disappointed as the range fell below Wall Street estimates of $492.1 million.
The shares of Unity Software Inc. (NYSE:U) shares were down about 33% at the close of earnings on Thursday, with bleak revenue guidance reflecting declining demand for the company’s software. The stock has also been under pressure this year on concerns that Google’s latest AI technology could disrupt the future of game engines.
Several companies have lowered their price targets for the stock in the wake of weak first-quarter revenue forecasts, including Citigroup, UBS, Goldman Sachs, Barclays and BTIG. The stock has a moderate buy value, with an average price increase of 93.08% at the close on February 12.
Unity Software Inc. (NYSE:U) operates a platform for developing, creating and expanding games and interactive experiences for consoles, personal computers, mobile phones and extended reality devices. The stock is down almost 60% this year.
While we recognize U’s potential as an investment, we believe certain AI stocks offer greater upside potential and less downside risk. If you’re looking for an extremely undervalued AI stock that will also benefit significantly from Trump-era tariffs and the onshoring trend, check out our free report on the best AI stocks for short term.
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