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Stockchase Opinions

Jim Cramer - Mad MoneyUnity Software UDON'T BUYApr 14, 2021

2020 IPOs cost too much, and are worth buying now that they are out of style and cheaper. It started at $68 and he called for a buy below $50 which never happened. Unity peaked at $175 in December and is now around $101. He would rather buy Roblox which is profitable, unlike Unity.

$101.12

Stock price when the opinion was issued

$27.36

As of Jun 18, 2026. Market Open.

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BUY ON WEAKNESS

Right now, a bit rich. You can see the spike on the chart, due to recent partnership with AAPL. Came down from grace quite a bit, but has recovered from lows in the $20s. Fairly well priced. He'd look to buy on either side of $30.

BUY

A good CEO. Are creating proprietary software.

PAST TOP PICK
(A Top Pick Dec 29/21, Down 81%) He got out in February, when all the levered SaaS companies got hit. These companies have so much debt because they spend so much money getting talent. Fantastic company. Software is used to make more than 50% of the world's gaming. Company expects to break even in Q4. Wait until Fed pivots to buy.
DON'T BUY
From Nvidia's pre-announcement today we know that videogames are weak. Unity reports tomorrow. Unity may get beaten down even more.
DON'T BUY
Unity doesn't make money, unlike Meta or Microsoft in tech. Unity is too speculative.
COMMENT
A favourite of his and former high flyer. They just reported an in-line quarter but cut full-year guidance. The stock plunged today. Why? They were hit by Apple's privacy restrictions on targeted advertising. So they developed their ad-tracking technology of users, but there was a serious engineering error that is since fixed, says management. A great company, but shares have fallen 85% from the peak. It won't turn a profit until 2026, though.
COMMENT
Likes it. For the intermediate-advanced user. Problem is it's not profitable, and with rising interest rates, slashing PEs, you have to be very nimble. He's reluctant to give 12-month price targets, as these are trades, not investments.
TOP PICK
Competitive advantage comes from the platform's extensive toolkit, which lets creators with no technical knowledge program games and simulations. Great place to play the metaverse AI space. 12-month price target of $195. Buy in thirds here around $143, 140, and 130, with a stop of $125. No dividend. (Analysts’ price target is $174.46)
BUY
It reported a strong quarter last month and shares soared into the $200's. But since then it's slid back down to $151. They just closed a deal of Weta Digital which handles all the digital effects in movies like Lord of the Rings, so this could turn Unity into a powerhouse.
WATCH
For all things metaverse, take a look at this name or FB instead of RBLX. Produces software side for developers in the gaming side of the business. Extremely advanced for VR and AI. Easy to use. More liquid and a bigger company than RBLX.
BUY
Yesterday, they bought Peter Jackson's Weta Digital, which made the cool effect for the Lord of the Rings movies. Unity is therefore a metaverse play, since the metaverse depends on creating avatars and digital experiences.
BUY
It has a metaverse kicker and could ride up for a few months, at least. The metaverse a trend that should rally for at least the next two months.
BUY
A hugely successful videogame developer, dominating this space. Unity is the best way to play the metaverse. Unity has Ominverse, the world's first simulation collaboration platform (with Adobe and Blender) that makes it easier to create metaverse content. One day, they will make 3D content in the real world that you can directly interact with, projected, instead of on-screen--the metaverse. Unity offers great software tools for 3D rendering. Shares were sharply down today as tech sold off.
BUY
Their platform helps developers make videogames, attract audiences and monetize their games. They also are involved in the metaverse. Unity is performing well as videogame companies are slumping.
WATCH
Platform that helps customize a 3D environment. Stock's fallen considerably, but it's growing rapidly with many avenues of revenue growth. Got caught up in the recalibration of valuation. Ahead of its time. SaaS geared toward developers.