Is Unity Software (U) Mirroring Wall Street Downturn?

We recently published a list of 10 Companies Mirror Wall Street Downturn. In this article, we are going to take a look at where Unity Software Inc. (NYSE:U) stands against other companies mirroring Wall Street downturn.

Wall Street’s main indices finished the shortened trading week in the negative territory, dampened by labor market data that came in much hotter than expected. The news fueled concerns that the Federal Reserve will not slash interest rates again.

Both the Dow Jones and the Nasdaq Composite dived by 1.63 percent on Friday, while the S&P 500 declined by 1.54 percent.

Ten companies mirrored a wider market downturn amid a series of catalysts that dampened investing appetite. This article explores the reasons behind their decline.

In Friday’s biggest losers, we only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

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

Unity Software Inc. (NYSE:U)

Unity Software Inc. (NYSE:U) dropped for a third day on Friday, losing 8.93 percent to end at $20.90 each over the lack of catalyst to spark buying appetite.

In the past one- and five-year performances, the company’s share price marked a decline of 43.71 percent and 69.42 percent, respectively, indicating investor pessimism amid ongoing challenges on its earnings performance.

In its latest quarterly result, Unity Software Inc. (NYSE:U) reported a loss of $0.31 per share, which was better than analysts’ expectations of $0.39. Despite settling in the red, the figures showed an improvement from the previous quarter, when it beat estimates with a smaller-than-expected loss of $0.32 versus $0.44.

Unity Software Inc. (NYSE:U) is a game engine company that creates tools that help create and run real-time 3D content, such as video games, interactive experiences, and industrial applications, across different platforms.

Overall, U ranks 6th on our list of companies mirroring Wall Street downturn. While we acknowledge the potential of U as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than U but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

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