12 Best Virtual Reality Stocks to Buy According to Analysts

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7. Unity Software, Inc. (NYSE:U)

Analyst Upside: 29.53%

Number of Hedge Fund Holders: 48

Unity Software, Inc. (NYSE:U) provides a platform to create interactive experiences and games. The company holds a significant spot in the VR industry as more than 60% of the top-grossing VR Steam experiences in 2023 were made with its offerings. It offers a range of software solutions to run, create, and monetize real-time 2D and 3D content for PCs, mobile phones, tablets, and VR/AR devices. Its tools and services ecosystem allows users to develop seamless VR experiences. More than 50% of week one Must Play Apple Arcade Games for Vision Pro as well as 2 out of 3 of the most popular Quest experiences were made with Unity. Similarly, over 70% of top-selling Quest games are made with Unity. Back in 2023, Unity’s stock soared after Apple announced that Unity’s gaming software would be used in Apple Vision Pro.

The company’s fiscal Q4 2024 results reflected progress, with Unity Software, Inc. (NYSE:U) meaningfully executing its guidance for both revenues and adjusted EBITDA. Revenue in its strategic portfolio rose at its fastest rate in four quarters, and adjusted EBITDA beat the top end of its guidance by 26%.

Unity Software, Inc. (NYSE:U) recently announced plans to migrate its Unity ad network to its new AI platform, Unity Vector. Vector is designed to leverage data from across the Unity ecosystem, integrating self-learning AI models to provide deeper insights, optimize performance, and deliver better results for its customers. The company plans to begin the migration towards the end of fiscal Q1 2025 and finish its first phase by the end of fiscal Q2 2025.

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