NASDAQ · STOCK
Unity Software
$31.71
52W $16.78 – $52.15
46/100
$13.84B
-20.2
2.05
Is U Bullish or Bearish?
Mixed.
Innellis AI committee rates Unity Software (U) Watch with a composite score of 46/100
, based on 7 analysts with 43% agreement.
Last updated July 31, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +14.05 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -5.95 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. News Analyst sees a compelling case — news sentiment is positive (+0.33 across 3 articles, 14d). Value Analyst remains cautious — price-to-book of 5.8x prices in significant intangible value. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- MACD histogram positive -- bullish momentum — Technical
- Market regime is bullish (Bull market -- normal position sizing) — Macro
- Beta of 2.00 means this name should amplify a favorable market regime — Macro
- News sentiment is positive (+0.33 across 3 articles, 14d) — News
Bear Case
- Price-to-book of 5.8x prices in significant intangible value — Value
- ROE of only -21.3% -- cheap may mean cheap for a reason — Value
- Growth rate is decelerating quarter over quarter -- the trend line matters more than the level — Growth
- RSI at 75 is in overbought territory — Technical
- Price trading above the upper Bollinger Band -- stretched — Technical
- Bollinger bandwidth of 16.2% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of July 31, 2026
Overall Committee Score
46/100
Agreement
43%
Analysts
7
Conviction
Contested
Sector Rank
Top 98%
of 172 Technology peers
Value Analyst
bearish
30
/ 100 · Moderate confidence
Multiples don't clear a genuine value bar here, or cheapness looks justified by weak fundamentals
− Price-to-book of 5.8x prices in significant intangible value
Growth Analyst
bearish
38
/ 100 · Moderate confidence
Growth story is weak, decelerating, or inconsistent
− Growth rate is decelerating quarter over quarter -- the trend line matters more than the level
Technical Analyst
neutral
48
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− RSI at 75 is in overbought territory
Risk Analyst
bearish
35
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Bollinger bandwidth of 16.2% signals elevated volatility
Macro Analyst
neutral
58
/ 100 · Moderate confidence
Macro backdrop is mixed or neutral -- not a strong tailwind or headwind either way
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
68
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.33 across 3 articles, 14d)
Portfolio Manager
neutral
45
/ 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2744.14)
Investment Thesis Evolution
Committee score weakened from 51.6 to 46.0.
- Committee agreement increased modestly from 33% to 43%.
- New bearish signals: 5 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 3 appeared.
- Bearish pressure eased: 2 signal(s) disappeared.
- Analyst(s) changed stance: Macro Analyst.
- New analyst(s) joined: Risk Analyst.
Analyst-level changes:
- Macro Analyst: stance bullish->neutral; score 65->58 (-8); +2 bullish signal(s).
- News Analyst: score 74->68 (-5); +1 bullish signal(s).
- Portfolio Manager: +2 bearish signal(s).
- Risk Analyst joined: bearish at 35.
- Technical Analyst: score 58->48 (-10); +2 bearish signal(s).
Comparing 2026-07-30 to 2026-07-31 (1 day apart).
Technical Analysis
RSI (14)
57.7
Neutral
MACD Histogram
0.198
Bullish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Hh Hl
Support
$19.09
Resistance
$32.57
Bollinger %B
0.75
Inside Bands
Price vs Moving Averages
EMA 9
$31.19
Above
EMA 21
$30.36
Above
EMA 50
$29.15
Above
EMA 200
$29.35
Above
Fundamental Analysis
Valuation
84
Growth
53
Profitability
0
Financial Health
92
Cash Flow
37
Valuation
P/E Ratio
-20.2×
P/B Ratio
4.63×
PEG Ratio
0.35
Dividend Yield
0.00%
52W High
$52.15
52W Low
$16.78
Quality & Growth
ROE
-12.4%
ROA
-5.9%
Gross Margin
59.4%
Operating Margin
-36.1%
Revenue Growth YoY
—
Debt / Equity
0.75
AI Fundamental Assessment
P/E ratio of -20.2 (inexpensive relative to a 15-40x range); Price-to-book of 4.6x; PEG ratio of 0.3 (under 1.0 suggests growth is undervalued relative to price); Return on equity of -0.1%; Return on assets of -0.1%; Net margin of -0.3%; Gross margin of 0.6%; Current ratio of 1.95 (healthy short-term liquidity); Debt-to-equity of 0.75; Free cash flow margin of 1.0% (thin cash generation); Free cash flow per share is positive (1.07); Most recent quarter beat estimates by 33.5%; 2 consecutive earnings beats; EPS growth decelerating (+30.0% -> +23.8% QoQ); Analyst estimates falling over recent quarters
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