When you muck something up in such a major manner, the first thing a competent manager will ask is if root cause was addressed. We are deploying monitoring, alerting and recovery systems and processes to promptly mitigate future complex data issues. We understand the problems and we are well advanced in addressing them. Several more paragraphs follow which detail the issues further, with the most important statement being the following:
Notice how we’re given very specific details about the internal problems that took place. We estimate the impact to our business of approximately $110 million in 2022 with no carryover impact to 2023. The second is that we lost the value of a portion of our data, training data due in part to us ingesting bad data from a large customer.The first was a fault in our platform that resulted in reduced accuracy for our Audience Pinpointer tool, a revenue expensive issue given that our Pinpointer tool experienced significant growth post the IDFA changes.The CEO goes on to talk about two major internal issues that caused 2022 revenue guidance to stumble. At this point in time, they could have left it at that, but there’s loads more detail provided. Our default is to trust a management team because that’s a given when you invest in a quality company. We see these challenges as temporary and not structural and do not expect them to impact future prospects of our business beyond 2022. While there are external factors to consider, the Operate challenge is mostly caused by internal factors in Unity monetization in an otherwise healthy market. Early on in the call, their head honcho says the following (our emphasis in bold): When they do, it’s usually a sign that they believe honesty and being forthright is the appropriate way to address shareholders, and we couldn’t agree more with that approach. It’s not often companies will air their dirty laundry when some big internal faux pas happens. We’ll do that by examining the insights given by management in the earnings call. In other words, we need to make sure our thesis hasn’t changed. What we’re concerned with today is examining if this quality company that appears to be significantly discounted presents an opportunity to enter a position or buy more shares. So, when we say the stock has plummeted, we’re making a fair statement. If you bought U stock six months ago at $182 a share, today those shares would have lost around 83% of their value. Today, it’s about half that level, but steadily rising Below in yellow highlight, you can see how the market reacted to the Rona in March 2020 with a huge VIX spike.
Just look at how the VIX – a simple measure of fear – has risen sharply lately. These days, all stocks are plummeting because fear is in the air. When you talk about a stock “plummeting,” you need some context.
UNITY STOCK SOFTWARE
Unity Software Unity Software Stock Plummets It is what people do when they’re frustrated. Through catastrophes like 9/11, the game industry had strong weeks immediately following. Through recession, the game industry has grown.
Through virtually every major crisis, the game industry has grown. So with that in mind, let’s take a look at the latest growth angel to fall from grace after a lackluster earnings report. As for raising debt, that’s more costly as well. You better have made hay while the sun shined because now that share prices have plummeted off a cliff, raising capital by selling equity means you’re diluting existing shareholders much more significantly. While before we focused on revenue growth above all else, now that capital is drying up, we’re also focusing on runway. That’s where we stand today with Unity Technologies ( U) – which we will henceforth refer to as Unity Software because our SEO ninja said so.Īs the market hits the skids harder than Pete Dougherty on any weekday night, we find our tech investing methodology changing a bit. When a stock you’re holding falls and your thesis hasn’t changed, you add more shares if you have capital allocated to that position. In the world of investing, this becomes critically important. It’s about being decisive and acting with conviction.
There’s an old saying the Americans have which goes something like this.