Jim Cramer Says Do Not Buy These 5 Stocks

2. Unity Software Inc (NYSE:U)

Number of Hedge Fund Investors: 38

Earlier in February Jim Cramer was asked about his thoughts on Unity Software Inc (NYSE:U). Cramer said he knows that Unity Software Inc (NYSE:U) has a lot of “problems” and he cannot recommend this stock until it starts making money. However, Cramer said he likes the “product.”

As of the end of the fourth quarter of 2023, 42 hedge funds tracked by Insider Monkey had stakes in Unity Software Inc (NYSE:U). The most notable stake in Unity Software Inc (NYSE:U) is owned by Jim Davidson, Dave Roux and Glenn Hutchins’s Silver Lake Partners which owns a $1.4 billion stake in Unity Software Inc (NYSE:U).

Earlier this month Macquarie Equity downgraded the stock to Underperform.

In its fourth quarter 2023 investor letter, ClearBridge Large Cap Growth Strategy stated the following regarding Unity Software Inc. (NYSE:U):

“We also sold Unity Software Inc. (NYSE:U), a select growth name purchased in early 2022 to participate in the growth of the global video game market, as our thesis no longer remains valid. Via M&A, Unity has diversified away from its game engine subscription business into the less differentiated advertising segment and most recently saw negative customer reaction to price increases, calling into question the offering’s pricing power.”