Why Unity Software Inc. (U) Soared Last Week

We recently compiled a list of the 10 Companies That Performed Well Last Week. In this article, we are going to take a look at where Unity Software Inc. (NYSE:U) stands against the other stocks.

The stock market fell heavily into the red territory on Friday as investors sold off positions to mitigate risks from a series of macroeconomic factors.

The Dow Jones declined by 1.69 percent, the S&P dropped by 1.71 percent, and the tech-heavy Nasdaq nosedived by 2.20 percent.

Despite the broader market downturn, ten companies gained momentum, recording price growths on a week-on-week basis.

We have listed 10 companies that performed well last week. Note that shares performances were based on closing prices last Friday, February 21, as against their prices on February 14, or a week earlier.

To come up with last week’s advancers, we considered only the stocks with $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) saw its share prices last week soar by 31.7 percent to close at $28.34 apiece as investor sentiment was buoyed by impressive earnings performance last year.

In a statement, Unity Software Inc. (NYSE:U) said its net loss attributable to the company for the fourth quarter narrowed by 51 percent to $122.7 million from $252.75 million, despite revenues declining by 25 percent to $457 million from $609 million year-on-year.

Net loss for the full year also shrunk by 19 percent to $664 million from $822 million in 2023, while revenues dropped by 17 percent to $1.813 billion from $2.187 billion in the same comparable period.

For the first quarter of the year, Unity Software Inc. (NYSE:U) expects revenues to settle between $405 million to $415 million.

Overall U ranks 2nd on our list of the companies that performed well last week. While we acknowledge the potential of U as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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.