Unity Software Inc. (NYSE: U) saw its stock price surge 11.94% during Thursday's intraday trading session, following a bullish comment from a Morgan Stanley analyst. The sharp uptick comes as investors react to positive developments in the company's advertising technology.

Morgan Stanley analyst Matthew Cost informed investors that the firm has observed a "marked improvement" in the commentary surrounding Unity's advertising product. Cost emphasized that Unity now has a "fundamentally more competitive ad product," suggesting enhanced revenue potential and market positioning for the game development platform provider.

The surge in Unity's stock price reflects growing investor confidence in the company's ability to capitalize on the competitive advertising market within the gaming industry. As Unity continues to evolve its offerings, this latest endorsement from a major financial institution could signal a potential turning point for the company's advertising segment. Investors will be keenly watching for further details when Unity releases its second quarter 2025 financial results, scheduled for August 6, 2025, before the market opens.