Unity Software (U) Moves 9.1% Higher: Will This Strength Last?

Unity Software Inc. (U Quick QuoteU – Free Report) shares ended the last trading session 9.1% higher at $24.51. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock’s 14.7% loss over the past four weeks.

The upswing in share price came following a social media post from meme stock trader Keith Gill, known online as Roaring Kitty. Gill, who notably spurred on the GameStop rally of 2021, posted a short clip of the musician Rick James who has a song called “Unity” on X. Some investors have taken the post as encouragement to purchase shares of the video game technology firm, which lost about 40% in 2024.

This company is expected to post quarterly loss of $0.35 per share in its upcoming report, which represents a year-over-year change of -252.2%. Revenues are expected to be $431.77 million, down 29.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Unity Software, the consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on U going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

Unity Software belongs to the Zacks Internet – Software industry. Another stock from the same industry, PubMatic, Inc. (PUBM Quick QuotePUBM – Free Report) , closed the last trading session 1% higher at $14.83. Over the past month, PUBM has returned -13.3%.

PubMatic’s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.37. Compared to the company’s year-ago EPS, this represents a change of +8.8%. PubMatic currently boasts a Zacks Rank of #3 (Hold).