There were no S&P 500 earnings reactions on Friday, but we want to tell you about one of our favorite software stocks.
After years of frustration, false starts, and sideways churn, Unity Software $U finally looks like it's turning the corner.
This is a $19 billion software platform at the center of interactive entertainment, powering everything from mobile games and console titles to AR/VR experiences and real-time 3D applications.
For a long time, that potential never translated into investor confidence. The business was noisy, margins were under pressure, and the stock paid the price.
That changed on November 5.
Unity delivered a clean double beat, with revenue and profitability both ahead of expectations, and the quarter's performance was impossible to ignore.
Additionally, the balance sheet improved, cash generation accelerated, and management's tone made it clear that the heavy lifting from the restructuring is largely behind them.
This was the kind of report that resets expectations, not just for the next quarter, but for the entire cycle.
The market's reaction said everything.
Unity ripped higher by roughly 18% in a single session, one of its strongest post-earnings reactions in years. This marked a decisive shift in how investors are treating this name, flipping sentiment from skepticism to re-engagement almost overnight.
Big reactions like this tend to show up early in trend changes, not at the end.
And the chart is confirming it.
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