New Year, New Goals? The "retail leader" of the U.S. stock market is suspected of paying attention to the former rival of the popular stock AppLovin

Unity Software's stock price rose by 16% during intraday trading on Thursday, closing up over 9%, with a significant increase in volume.

Earlier on Tuesday evening, a block trade of 1.32 million shares of Unity Software, valued at a total of $29.7 million, occurred.

Retail investor leader Keith Gill is suspected to have taken action. Gill's nickname on Reddit is DeepF-Value, and on YouTube and X, he is known as Roaring Kitty. He rose to fame during the well-known retail short squeeze involving GME in 2021 and made a reappearance last May after a long silence.

The latest development is that Roaring Kitty released a short video clip featuring the late musician Rick James, who recorded a famous song titled "Unity."

This series of information has sparked speculation in the market. Some believe that Gill may be hinting at something related to Unity Software. However, as is often the case with Gill's posts, the video may also be unrelated to Unity Software, merely pointing to the broader concept of "unity," or something entirely unrelated.

Unity Software's popularity on social media has surged, with a fourfold increase in related posts within hours. The sentiment on the X platform is mostly optimistic.

Let's feel the influence of the "retail investor leader":

In less than 10 minutes, the tweet posted by Roaring Kitty has garnered over 100,000 views, with people speculating that this GIF is related to Unity Software.

Some users have pointed out various connections between the signs:

Noticed! Unity Software's stock price rose nearly 10% on Thursday morning, following the trade of 1.32 million shares valued at $29.7 million. The company operates a platform that provides real-time 3D content and experiences. It could be a target for GME.

Some netizens also mentioned other possible catalysts for the stock price increase:

It may be acquired by GME. The new CEO of Unity is the former COO of Zynga, who quadrupled the stock in four years. It is clear that mobile and VR/XR are the main engines.

Last November, Unity Software announced mixed results for the third quarter. Although revenue exceeded expectations, earnings fell short of analyst predictions:

The company reported an adjusted loss per share of $0.31, while analysts had originally expected earnings of $0.14 per share; revenue for the quarter reached $446.52 million, surpassing the market consensus expectation of $428.42 million, and achieved year-on-year growth.

Looking ahead, Unity expects fourth-quarter revenue to be between $422 million and $427 million, with the midpoint slightly above the analysts' general expectation of $424.9 million. However, the company's guidance for full-year 2024 revenue is $1.703 billion to $1.708 billion, lower than the analysts' original estimate of $1.766 billion.

It is important to note that Unity Software currently faces significant challenges, with the stock down 39% in 2024. In stark contrast is its former competitor, the super popular U.S. stock AppLovin. AppLovin ended last year with an astonishing annual stock price increase of over 700%, far exceeding the less than 200% increase of chip giant NVIDIA, which is at the core of the artificial intelligence frenzy.

Both AppLovin and Unity are important players in the gaming industry, each providing unique support for developers:

• Unity is widely used by independent developers and mobile developers, offering a flexible platform for building cross-device games and interactive 3D experiences. However, Unity faces some challenges, including insufficient profitability and intensified market competition.
• AppLovin focuses on app monetization and user acquisition, helping games reach a broader audience and achieve revenue growth. AppLovin is a well-known advertising and marketing giant in the global gaming and mobile advertising industries, becoming one of the stocks that global investors are paying attention to due to its breakthroughs in AI-driven advertising technology.

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