Search Unity

  1. Welcome to the Unity Forums! Please take the time to read our Code of Conduct to familiarize yourself with the forum rules and how to post constructively.

Unity Stock

Discussion in 'General Discussion' started by AlanMattano, May 5, 2022.

Thread Status:
Not open for further replies.
  1. AlanMattano

    AlanMattano

    Joined:
    Aug 22, 2013
    Posts:
    1,461
    Can we talk about Unity stock here_?
    I have some.
    It is touching 60USD and I think is an all-time low.
     
  2. Gekigengar

    Gekigengar

    Joined:
    Jan 20, 2013
    Posts:
    603
    Opport-unity :cool:
     
    atomicjoe, cxode, Tanner555 and 6 others like this.
  3. AlanMattano

    AlanMattano

    Joined:
    Aug 22, 2013
    Posts:
    1,461
    opportunity jajajaja
    Can be. I purchase more stocks. But the indicators are in a recession zone. And that can put more selling pressure.
    I did not go full in.
     
  4. Antypodish

    Antypodish

    Joined:
    Apr 29, 2014
    Posts:
    9,661
    Yeah, wait until will be at pick high :)
     
  5. AcidArrow

    AcidArrow

    Joined:
    May 20, 2010
    Posts:
    9,547
    Earnings are coming up on May 10, it will probably fall further after that, considering how every previous earnings report was underwhelming.
     
    chingwa likes this.
  6. MadeFromPolygons

    MadeFromPolygons

    Joined:
    Oct 5, 2013
    Posts:
    3,540
    This shouldnt really be surprising, given how overvalued they were at stock market launch. I am sure it will go up at some point, but if you bought unity stock earlier than now, you have to accept you are going to be playing a very long game (i.e. waiting multiple years for any sizable returns on the investment)
     
    Antypodish likes this.
  7. mgear

    mgear

    Joined:
    Aug 3, 2010
    Posts:
    7,707
    even other similar tech stocks are down too, and see how much roblox has dropped from their highs..
     
  8. Martin_H

    Martin_H

    Joined:
    Jul 11, 2015
    Posts:
    4,402
    If you look at this chart and imagine you know nothing about Unity as an engine and it's just a stock to you. Who in their right mind would look at this and think this is a great investment?

    upload_2022-5-6_15-8-31.png
     
    atomicjoe and IOU_RAY like this.
  9. stain2319

    stain2319

    Joined:
    Mar 2, 2020
    Posts:
    326
    I get what you're saying but that is highly dependent on the timeframe. "2022" is not a useful label for the axis.
     
    Shizola likes this.
  10. BIGTIMEMASTER

    BIGTIMEMASTER

    Joined:
    Jun 1, 2017
    Posts:
    4,678
    thats where the flashy buzzwords come into play.
     
  11. Antypodish

    Antypodish

    Joined:
    Apr 29, 2014
    Posts:
    9,661
    You need take graph for past 5 years, at least, to be any meaningful. Then you can see the trend.
     
    MadeFromPolygons and stain2319 like this.
  12. PanthenEye

    PanthenEye

    Joined:
    Oct 14, 2013
    Posts:
    738
    2021 financial results are looking rather good. They project over 30% revenue growth per year. And the demand for real-time graphics platforms is only growing. Unity is well positioned in that regard. So $60 seems like a good point to jump in.
     
  13. Metron

    Metron

    Joined:
    Aug 24, 2009
    Posts:
    1,097
    "Loss from operations was $531.7 million, or 48% of revenue, compared to loss from operations of $274.8 million, or 36% of revenue, in 2020."

    gosh...
     
  14. stain2319

    stain2319

    Joined:
    Mar 2, 2020
    Posts:
    326
    Which tells you that revenue in 2020 was just shy of 680 million, while 2021 was over a billion. Takes money to make money...
     
  15. PanthenEye

    PanthenEye

    Joined:
    Oct 14, 2013
    Posts:
    738
    They intentionally operate at a loss to expand their business. There are many companies that intentionally operate at a loss for this reason.
     
    lmbarns likes this.
  16. AcidArrow

    AcidArrow

    Joined:
    May 20, 2010
    Posts:
    9,547
    Unity insiders have been getting rid of their shares for a while now.
     
    Last edited: May 6, 2022
  17. PanthenEye

    PanthenEye

    Joined:
    Oct 14, 2013
    Posts:
    738
    I wasn't aware of that. Good to know.
     
  18. stain2319

    stain2319

    Joined:
    Mar 2, 2020
    Posts:
    326
    Citation needed.

    In most cases, any "insiders" who have any kind of clout within a company cannot just buy and sell the company stock willy nilly due to insider trading rules.

    Executives are often compensated in large part with stocks and those stocks are automatically sold on a quarterly scheduled basis. The sales are published and pre-approved by the SEC.

    Employee stock purchase programs (even at lower levels) usually require a significant holding period before stock can be sold after it has been purchased.

    That leaves us with employees who have vested RSUs who may have (foolishly) been holding on to them after the vesting date. That stock can be sold at any time, and it is possible that such people are suddenly dumping all their Unity stock but it wouldn't be enough to move the needle in relation to institutional investors, who regularly trade stocks at the rate of eight-figure investments or more.

    So I'm not saying you're wrong but this type of "information" is highly questionable and should not be considered sound investment advice.

    Full disclosure, I do not own any stock in Unity.

    however I do work for a large enterprise software company and approximately 2/3 of my compensation is stock-based so I have some experience with these matters.
     
    Shizola, Rewaken and DragonCoder like this.
  19. CityGen3D

    CityGen3D

    Joined:
    Nov 23, 2012
    Posts:
    665
    The slide in price is really just part of a wider stock market correction (interest rate rises, Ukraine war, etc), rather than any specific news about Unity itself.

    Just in November last year the opposite was happening where there was a buzz about all things metaverse and Unity hit ATH of 210, a 4x on the IPO price of 52 just a year prior.

    In both cases, the fundamentals of Unity as a company are largely the same, but one presents a good buy opportunity and one presents a good sell opportunity.
    Unfortunately people get them the wrong way round all too often, because its easier to buy the top and panic sell the bottom than it is to buy during the correction and sell when it pumps!
     
    Last edited: May 6, 2022
    Rewaken and stain2319 like this.
  20. Ryiah

    Ryiah

    Joined:
    Oct 11, 2012
    Posts:
    17,999
    If you only looked at that limited chart you might think the stock has never had value but that's not the case.

    upload_2022-5-6_11-26-26.png
     
  21. Martin_H

    Martin_H

    Joined:
    Jul 11, 2015
    Posts:
    4,402
    When was the IPO? I clicked on "max" in the google chart thingy. It was 2020, wasn't it? Not even 5 years in the market.

    Fair enough, I blame google for not displaying all the data.
     
  22. AcidArrow

    AcidArrow

    Joined:
    May 20, 2010
    Posts:
    9,547
    It's public information, you can look it up.
    upload_2022-5-6_18-51-39.png
    upload_2022-5-6_18-52-30.png
     
    atomicjoe likes this.
  23. Martin_H

    Martin_H

    Joined:
    Jul 11, 2015
    Posts:
    4,402
  24. AcidArrow

    AcidArrow

    Joined:
    May 20, 2010
    Posts:
    9,547
    Nah, I think he sold a ton more than that. That was just the most recent sale.
     
    atomicjoe and Martin_H like this.
  25. DanMeyer009

    DanMeyer009

    Joined:
    Sep 22, 2013
    Posts:
    22
    Just gonna drop this little tidbit here...

    upload_2022-5-6_12-0-54.png
    upload_2022-5-6_12-2-7.png
     
    Tanner555 likes this.
  26. stain2319

    stain2319

    Joined:
    Mar 2, 2020
    Posts:
    326
    Again, a CEO cannot just "decide" to sell any amount of stock they want.

    These sales are highly regulated, prescheduled events.
     
  27. AcidArrow

    AcidArrow

    Joined:
    May 20, 2010
    Posts:
    9,547
    Yes, I'm sure he was all, "noooo my stock, I don't want to sell it, nooooooo, plzzzzz".

    Or is what you're saying that if he was allowed he would have dumped the stock even faster?
     
  28. stain2319

    stain2319

    Joined:
    Mar 2, 2020
    Posts:
    326
    It's not up to him, at all. That's the point.
     
  29. AcidArrow

    AcidArrow

    Joined:
    May 20, 2010
    Posts:
    9,547
    This is wrong.

    Or, how did you put it previously?

    "Citation needed"
     
  30. stain2319

    stain2319

    Joined:
    Mar 2, 2020
    Posts:
    326
    No, it really isn't. Insider trading is very highly regulated. If a CEO was allowed to dump his stock (or buy more) based on his knowledge of what/how the company was doing the stock market would be meaningless as a measure of corporate value. CEOs are issued annual stock grants and these grants are sold and converted to cash on a scheduled, quarterly basis. Any deviation has to be filed and approved by the SEC.
     
    DragonCoder likes this.
  31. AcidArrow

    AcidArrow

    Joined:
    May 20, 2010
    Posts:
    9,547
    Yes, there is a lot of regulation so that large movements are avoided, but AFAIK there is no law forcing CEOs to sell.

    In fact the laws are mostly there to prevent them from dumping it all at once, since that would have tanked the price.

    But no one is forcing him to sell most of his stock as he has. That is his choice. As are a lot of other insiders, which is why most analyses of the stock mention that there is negative insider sentiment towards the stock, since insiders are selling a lot (within the limits of the law).
     
  32. stain2319

    stain2319

    Joined:
    Mar 2, 2020
    Posts:
    326
    No one "forces" him to sell but there are maximums that he is allowed to sell at once and there are waiting periods. If he sold 30 million worth of stock in June he probably placed that sell order in January.
     
  33. AcidArrow

    AcidArrow

    Joined:
    May 20, 2010
    Posts:
    9,547
    He has sold 400million worth of stock over the last year.
     
  34. stain2319

    stain2319

    Joined:
    Mar 2, 2020
    Posts:
    326
    So what? That's part of his compensation.

    Do some research into SEC Rule 10b5-1.
     
  35. AcidArrow

    AcidArrow

    Joined:
    May 20, 2010
    Posts:
    9,547
    My whole point was:

    "Unity insiders have been getting rid of their shares for a while now."

    You are saying nothing that refutes this, but somehow you are disagreeing with me.
     
    atomicjoe likes this.
  36. AcidArrow

    AcidArrow

    Joined:
    May 20, 2010
    Posts:
    9,547
    upload_2022-5-6_21-44-0.png
    upload_2022-5-6_21-44-40.png

    So.

    Insiders are selling. More than average. Enough so that there are multiple articles noting it and notes on my brokerage about it.

    It is generally considered bad.

    You may not consider it bad, that's fine. Everyone can draw their own conclusions.

    But don't F***ing act like it's not true or that there isn't a negative implication associated with it.
     
    atomicjoe, Tanner555, jdtec and 2 others like this.
  37. stain2319

    stain2319

    Joined:
    Mar 2, 2020
    Posts:
    326
    Context matters. You said it as if to specifically imply that you can make some kind of association between the likely success of a given company and the rate at which "insiders" are selling their shares.

    SEC rule 10b5-1 specifically exists in order to ensure that no such association can reasonably be made.

    Unity insiders may be selling shares and they may not, but it's irrelevant to the question of whether a stock is a good investment or not.
     
  38. stain2319

    stain2319

    Joined:
    Mar 2, 2020
    Posts:
    326
    Lol. There are multiple articles on the internet trying to sensationalize normal activity? Color me surprised.
     
  39. AcidArrow

    AcidArrow

    Joined:
    May 20, 2010
    Posts:
    9,547
    And we know SEC rules are always 100% effective and completely achieve what they aim to do, which is why US stock market is completely fair and transparent, and there is absolutely no way we can draw any conclusions at all now!...

    I understand though, what you're telling me is that Unity insiders are selling their stock as fast they legally can, because deep down they really believe in the company and the stock. IF there is a conclusion that can be drawn, it's probably this one, right?

    [/sarcasm]
     
    atomicjoe, IOU_RAY and Martin_H like this.
  40. stain2319

    stain2319

    Joined:
    Mar 2, 2020
    Posts:
    326
    You're getting close to the truth actually, whether you know it or not.

    Studies have been done taking the highest paid "money manager" and "investment banker" folks and looking at the stocks they picked. These are people whose entire job it is to study companies and stocks and the market.

    They looked at the average return on investment among that entire group and compared it to the returns on investment from an "index fund" which just invests in the market on a sort of overall basis (such as the S&P 500).

    The returns were almost always about the same.

    The lesson here is that it is almost impossible, even for people who literally do this for a living, to actually pick individual stocks and beat the market.

    So it is not that far off from reality to suggest that it's not actually possible to glean useful information on an individual company basis and use it to make decisions on what stock to buy and expect to do any better than average. If the people who trade stocks all day long can't do it, neither can you.

    But in your life you are sure to meet an almost infinite number of people who will try to convince you that they know how. Most of those will be trying to sell you something.
     
  41. BIGTIMEMASTER

    BIGTIMEMASTER

    Joined:
    Jun 1, 2017
    Posts:
    4,678
    if leadership is jumping ship, what could it possibly suggest?
     
    atomicjoe likes this.
  42. PanthenEye

    PanthenEye

    Joined:
    Oct 14, 2013
    Posts:
    738
    Riccitiello's retirement plan succeeded.
     
  43. SirTwistedStorm

    SirTwistedStorm

    Joined:
    Sep 20, 2015
    Posts:
    192
    I mean after a certain age I'm selling off most my stuff and living in a cabin somewhere pretty with some whiskey and a dog, seems like normal behavior to me.
     
  44. AlanMattano

    AlanMattano

    Joined:
    Aug 22, 2013
    Posts:
    1,461
    Can Riccitiello go into a short position?

    I sold my U shares at 57 but before the market went down.

    upload_2022-5-9_11-33-47.png

    Now U is around 50. It can be a nice time for a rally (up) this week.

    But what if...

    is a fake rally, dead cat bounce and a more popular short position (for months) that will end in short euphoria.
     
  45. giraffe1

    giraffe1

    Joined:
    Nov 1, 2014
    Posts:
    281
    A moment of silence for all the bag holders!
     
  46. frosted

    frosted

    Joined:
    Jan 17, 2014
    Posts:
    3,993
    atomicjoe likes this.
  47. AlanMattano

    AlanMattano

    Joined:
    Aug 22, 2013
    Posts:
    1,461
    I enter Long 52 and exit U at 53.
     
    Last edited: May 9, 2022
  48. Ne0mega

    Ne0mega

    Joined:
    Feb 18, 2018
    Posts:
    558
    But Forma is an exciting new tool that will empower creators with the dynamics they need, with a robust development environment and power at the fingertips of creators, with Forma you can do anything. It specializes in Madison avenue jingoisms and power marketing words like no other product introduced in the 3d application marketing tools space. It is a revolutionary new product that applies synergies to both highly technical specialists and product brand developments teams that set teh high water mark for the industry. Why the CEO would dump 400M of stock when after such an exciting new product that would push the boundaries of integrated software engineering and clear investment growth opportunities to accel at revenue optimization streams from the small studio to the top fortune 500 companies, is difficult to comprehend and needs unpacking to understand the true roots of such strategic posturing.

     
    atomicjoe, AcidArrow, chingwa and 2 others like this.
  49. stain2319

    stain2319

    Joined:
    Mar 2, 2020
    Posts:
    326
    Wouldn't you? :)

    2/3 of my annual compensation (or more) is stock based. If I don't sell it, I don't get paid. I try to sell it when the price is high. I can't blame anyone for doing the same...
     
    Shizola likes this.
  50. PanthenEye

    PanthenEye

    Joined:
    Oct 14, 2013
    Posts:
    738
    One has to wonder if all these nicely made marketing videos actually expand Unity's market reach in any significant way or they're just puff pieces to hype the perceived value of Unity and its theoretical application. Since the CEO and other insiders are massively dumping their positions, I'm inclined to think it's the latter.
     
Thread Status:
Not open for further replies.
unityunity