Cathie Wood puts $6.2 million into software giant
This tech firm dropped 15% last month.
When Unity (U) - Get Free Report first went public, investors were excited about the potential of the dominant videogame developer.
The stock, debuting at $75 a share in 2020, quickly hit a high of $175, stabilized, and in 2021 hit a high of $210. But from that point, shares of Unity have sloped downward; by 2022, it was trading in the $30 range.
Last month, the stock took a tumble, falling around 15%; at last check they were trading at $29.44. The reason behind the tumble was a blog the company posted on Sept. 12, instituting a new up-front install fee on games when downloaded by users.
Related: Cathie Wood sinks $1.8 million into struggling, ultra-cheap tech stock
After 10 days of backlash, Marc Whitten, the head of Unity Create, wrote to the community to address those concerns and detailing new changes to these fees. The new fee structure, however, does not represent a complete backtrack; the company is still charging developers more for its services.
Asset manager Cathie Wood spots opportunity
For Cathie Wood, chief executive and investment lead of Ark Invest, the drop in Unity's stock price represents a perfect time to buy.
Ark Invest picked up a total of 213,733 shares of Unity Oct. 4, spread across three of the company's ETFs: Innovation, Next Gen Internet and Autonomous Tech and Robotics. Based on the tech firm's closing price, the move was valued at more than $6 million.
More on Ark Invest:
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- Cathie Wood dumps nearly $30 million worth of two beloved tech giants
Ark Innovation was responsible for the biggest share of the purchase, picking up close to 160,000 shares. This boosted Ark Innovation's holding to 8.3 million shares, valued aat more than $240 million and weighted at 3.63% of the fund. Ark's Unity holding is the fund's 10th-largest holding.
Unity brought in $533 million in revenue for the second quarter of the year, above the company's guidance of $520 million. The company posted third-quarter revenue guidance of $550 million.
The average analyst price target for the stock, which holds a moderate buy rating, is $47.
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