Unity Software (NYSE:U) was one of the most successful tech IPOs of 2020. The gaming engine company priced its initial public offering at $52 a share last September, the stock opened at $75 on the first day, and it’s now trading above $120. Is Unity’s stock worth buying after those big post-IPO gains?
Let’s examine three reasons to buy Unity — as well as one reason to sell it — and see if we can find an answer.
1. It’s essential to the gaming industry
In the early 2000s, most game developers built their graphical rendering, animation, lighting, physics, sound, and user interfaces from scratch. Those features also needed to be coded separately for different gaming platforms, which was an error-prone, expensive, and time-consuming process.