- Unity Stock Price Forecast : NYSE: U is looking very bearish after breakdown below $38.5 support. Bears may target $31.5 in the coming weeks.
Unity (NYSE: U) stock price plunged on Wednesday after the video game engine developer announced a runtime fee. This news was not received well by the stockholders, and the shares plummeted by 5.5% on Wednesday. On Thursday, Unity shares opened lower, but the candle turned green as the buyers stepped in. The stock was down 1.22% till press time.
Unity is not having the best of times. Earlier in August, the developer announced a $0.51 loss per share for Q2. The company also announced $533.5 million in revenue, up from last year’s $297 million. As a result, the stock plunged 24%.
Unity’s Developer Fees Receive Harsh Response
Unity Software has come up with a way to break its unprofitable curse. The gaming engine developer will impose fees on game developers after they earn a certain amount of revenue. This move was not received well on social media. Many stakeholders argued that the small fee would negatively affect the game developers.
Last week, the president of Unity Software, Tomer Bar-Zeev, made headlines after he sold 37,500 Unity shares in the market. The shares sold amounted to $1,404,652. According to the filing with the SEC, the president holds around 6 million shares of Unity software in his custody. Unity stock currently sits 24% below its yearly high of $48.6.
Unity Stock Price Prediction
The chart for NYSE: U shows the price trading inside the $32-$47 price range since May 2022. A deeper analysis of the chart reveals that the price retested the $47 range high several times but was unable to gain strength above the key level.
Unity stock price forecast is looking very bearish after a breakdown below the range mid of $38.5. Bears are expected to target the range low of $32 in the coming weeks. The price is likely to find some form of support at the 200 MA level, at $34.13. The only way to avoid this outlook is to reclaim the $38.5 level.
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