Tech Firms Dominate Monday’s 10 Worst Performers

1. Unity Software Inc. (NYSE:U)

Unity Software tumbled by 5.56 percent on Monday to finish at $18.16 each as investors continued to sell off positions following a rating downgrade from an investment firm.

Last week, UBS cut its price target for Unity to $22 from $30 previously, while maintaining a Neutral stand on the stock. The new price, however, still represented a 21-percent upside from its closing price on Monday.

According to UBS, its adjusted rating was based on the minimal albeit positive feedback for the company’s new algorithm, Vector, placing Unity in a “show me” position.

Unity launched the AI-powered platform Vector as it eyes to keep pace with AppLovin Corp.

“Vector is designed to leverage data from across the Unity ecosystem, integrating self-learning artificial intelligence models that will provide deeper insights, optimize performance and deliver better results for customers,” said Unity President and CEO Matt Bromberg in the company’s last earnings call.

“Vector enhances targeting precision and increases audience scale through a sharper analysis of richer data sets, and it’s also able to adapt in real-time, helping customers navigate an increasingly competitive mobile marketing landscape,” he added.

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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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