Why Unity Software Inc. (U) Went Down On Monday?

We recently published a list of Tech Firms Dominate Monday’s 10 Worst Performers. In this article, we are going to take a look at where Unity Software Inc. (NYSE:U) stands against other tech firms that dominate Monday’s worst performers.

Wall Street’s main indices kicked off the trading week in the green territory, albeit with minimal gains, as investors stayed on the sidelines while continuing to digest President Donald Trump’s temporary tax reprieve on technology companies.

The S&P 500 recorded the highest gain, up 0.79 percent, while the Dow Jones came second at 0.78 percent. The tech-heavy Nasdaq was also up by 0.64 percent.

Meanwhile, 10 companies, predominantly in the technology sector, bucked a broader market optimism, booking modest declines during the session. In this article, let us explore Monday’s 10 worst performers and the reasons behind their gains.

To come up with the list, we only considered the stocks with $2 billion market capitalization and $5 million trading volume.

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

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.

Overall, U ranks 1st on our list of tech firms that dominate Monday’s worst performers. 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.

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