Unity Software Inc. (U) Shares Plummet Following Weak Q1 Revenue Forecast

Unity Software Inc. (NYSE:U) is among the 10 best meme stocks to buy now. The company’s shares slumped this week after it issued a weak first-quarter revenue forecast.

During the Q4 2025 earnings call on February 11, the videogame engine maker reported a 10% increase in quarterly revenue to $503 million, led by strong growth in Unity Vector. Diluted net loss per share was $0.21 compared as compared to $0.30 in the prior year’s period.

The company said it expects revenue between $480 million and $490 million for the first quarter of fiscal 2026, which left investors disappointed as the range fell below Wall Street’s estimates of $492.1 million.

Unity Software Inc. (NYSE:U)’s shares had dropped by about 33% as of the close on Thursday since the earnings call, with the downbeat revenue forecast reflecting slowing demand for the company’s software. The stock has also been pressured this year by concerns that Google’s latest AI technology could disrupt the future of game engines.

Several firms trimmed their price targets on the stock in the follow-up to the weak revenue forecast for Q1, including Citigroup, UBS, Goldman Sachs, Barclays, and BTIG. The stock is a Moderate Buy, with an average share price upside of 93.08% as of the close on February 12.

Unity Software Inc. (NYSE:U) operates a platform to develop, create, and grow games and interactive experiences for consoles, personal computers, mobile phones, and extended reality devices. The stock is down nearly 60% year-to-date.

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