Unity software (NYSE: U) the stock ended Tuesday’s trading session down about 6.4%. With the United States seeing a record number of confirmed coronavirus cases amid the spread of the omicron variant, investors are taking a more cautious stance on growth-dependent tech stocks.
Heavy technology Nasdaq composite the index closed the session down 1.3%. While there hasn’t been any company-specific news taking into account the decline in Unity’s share price, it’s not surprising to see growth stocks losing ground amid volatile market prices. markets.
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Unity provides a development engine and other tools that can be used to create video games and other interactive content experiences. Strong trading performance and a promising long-term demand outlook have helped the stock climb around 91% since the market closed on its initial public offering (IPO) in September 2020, but stocks have recently suffered. a large sale due to concerns. related to the pandemic, interest rate hikes and other measures the Federal Reserve is likely to implement in 2022.
After the recent pullback, Unity stock is trading around 38% from the 52-week high it reached in November. For investors looking to take advantage of the long-term growth of the video game and the visual content industries, the recent pullback in Unity stock could be an interesting entry point. Unity also stands out as the first choice for those looking to cash in on the growth of the Metaverse. The company’s heavily growth-dependent valuation paves the way for volatile market swings if investor appetite for risky tech games continues to wane, but it would also not be surprising to see stocks rebound and hit new ones. tops.
Unity Software now has a market cap of around $ 37 billion and is valued at around 26 times expected sales this year.
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