12/31/2023 0 Comments Unity software stock a buy![]() This is on top of its consulting/ training/ custom development with revenue recognized after services are rendered, and the cloud hosting arrangement with revenue based on fixed or consumption-based fees. Now, how will this impact U's top and bottom lines moving forward?įor now, the software company does neither a royalty pricing strategy nor a revenue share model, but opts for an annual subscription model (per developer seat) under Create Solutions. With developers likely to build 3D apps for professional, retail, commercial, educational, research and development, and many other end markets, we believe U's prospects remain very promising for the next decade, especially aided by AAPL's stamp of approval and "massive $800B AI opportunity." This may be a similar trend to that of smartphones in 2023, 16 years after Steve Jobs' introduction of the first generation iPhone. We believe the AR/VR headsets also have the opportunity to reach a similar widespread use case as that of the next generation computing platform, (think Tom Cruise in Minority Report or Tony Stark in Iron Man). This is why the partnership between AAPL and U may trigger a massive tailwind in the latter's platform adoption and top/ bottom lines moving forward. With AAPL only commanding 21.5% of the smartphone market share, it appears that its users are generally high spenders, generating massive revenues for both the smartphone maker and developers alike. This is on top of the App Store facilitating $1.1T in billings and sales last year. The platform also commanded 67% of the global app consumer spending in 2022, generating an annualized app and game revenues of $90.8B by Q1'23 (+3.6% QoQ/ +4.1% YoY). We believe U has much to gain through the integration with the iOS platform, since it has generally been well-loved by developers, with 1.76M of available apps. While that story is still developing, with the advertising company reporting -$4B of operating losses in the Reality Labs segment by FQ1'23, it appears that the AR/VR future is becoming a reality after all. It was a similar cadence to one we witnessed back in October 2021, when Meta ( META) introduced its Metaverse ambitions. The Cupertino giant has elected to use the software company's gaming and developer platform for the spatial computing headset, naturally triggering renewed enthusiasm surrounding its offerings. Then again, it is also evident that the stock has recently rallied by +37.29% after Apple's ( AAPL) presentation of Vision Pro on June 05, 2023. True enough, U had breached its previous support levels of mid $30s since then, cratering at the $20s by November 2022, thanks to the peak recessionary fears. ![]() However, due to its cash burn and share dilution, we also iterated a lower entry point for an improved margin of safety. We were of the opinion that the deal might aid the former's monetization strategy in the Metaverse and advertising market. ![]() ( NYSE: U) in September 2022, discussing its previous ironSource acquisition. We previously covered Unity Software Inc. CEO John Riccitiello said on an earnings call in November that Unity is one of "the very few partners there" as Apple became bigger in digital advertising.Justin Sullivan The Unity Investment Thesis Looks Highly Promising, Thanks To Apple's Vision Pro ![]() Unity, which helps developers incorporate advertising into their apps, was one of the companies hurt by Apple's iOS privacy changes. "With visionOS and Unity's PolySpatial technology, we can't wait to see the new apps and games Unity developers will create for Vision Pro!" "We're excited to deliver Unity's powerful and familiar real-time 3D tools and capabilities to Apple Vision Pro, so our huge community of passionate developers can bring new and existing Unity-created apps and games to this exciting new spatial computing platform," the spokesperson wrote in an email. Unity did not issue a press release on the collaboration, although a company spokesperson did send CNBC a statement on the topic. "Today, we are excited to share that we've been working with Unity to bring those apps to Vision Pro, so popular Unity-based games and apps can gain full access to VisionOS features such as Passthrough, high-resolution rendering and native gestures." "We know there is a community of developers who have been building incredible 3D apps for years," Susan Prescott, Apple's vice president of worldwide developer relations, said during Apple's keynote. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |