Unity: Upgrade To Strong Buy On Excellent Preliminary Q1 Results

Ian BezekInvesting Group LeaderFollow5ShareSavePlay(10min)CommentsSummaryI am upgrading Unity shares back to a strong buy.Shares have corrected sharply even as the operating business is posting accelerating growth.Analysts have suggested that Unity could be a net loser from AI adoption, but so far, the opposite outcome has occurred.Software stocks remain deeply out of favor, but I'm willing to add to my Unity position today regardless.Looking for a helping hand in the market? Members of Ian's Insider Corner get exclusive ideas and guidance to navigate any climate. Learn More » Sundry Photography/iStock Editorial via Getty Images I last covered Unity Software (NYSE:U) in October, moving from a prior "strong buy" back to a "buy" rating. At the time, I wrote that: "I'm still bullish on Unity, but the higher valuationThis article was written byIan Bezek23.55K FollowersFollowIan Bezek is a former hedge fund analyst at Kerrisdale Capital. He has spent the decade living in Latin America, doing the boots-on-the ground research for investors interested in markets such as Mexico, Colombia, and Chile. He also specializes in high-quality compounders and growth stocks at reasonable prices in the US and other developed markets. Ian leads the investing group Ian's Insider Corner. Features of the group include: the Weekend Digest which covers everything from new ideas to updates on current holdings and macro analysis, trade alerts, an active chat room, and direct access to Ian. Learn More.Analyst’s Disclosure: I/we have a beneficial long position in the shares of U either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.