Unity Software Inc.'s stock plummeted 5.14% during intraday trading on Thursday, following a series of analyst price target cuts in response to the company's first-quarter revenue guidance that fell below market expectations.
The sell-off came after Unity reported better-than-expected fourth-quarter earnings but provided disappointing forward guidance. Multiple Wall Street firms, including Jefferies, Barclays, BTIG, Macquarie, Piper Sandler, Needham, Wells Fargo, Wedbush, and Morgan Stanley, significantly reduced their price targets on the stock.
While Unity's Q4 results exceeded analyst estimates, the company's Q1 revenue projection of $480-490 million came in below the consensus estimate of $493.93 million. Analysts cited concerns about the company's growth prospects and exposure to global trade tensions and anti-U.S. sentiment as contributing factors to their downward revisions.