Unity Software (U) Stock Forecast & Price Target

Unity Software Inc. is positioned for a significant turnaround, with expectations for a return to revenue and EBITDA growth projected for the second half of 2025 and beyond, indicating that the company has likely passed a critical inflection point. The continued expansion of Unity's Vector platform, coupled with a stabilizing ad network experiencing minimal cannibalization, reinforces the company's capacity for sustainable growth in future years. These factors collectively support the justification for a premium valuation multiple, reflecting optimistic long-term financial prospects.

Unity Software Inc. faces challenges in harnessing valuable purchase intent data, which is critical for leveraging advertising revenue within its platform. The absence of this key data could hinder Unity's ability to effectively monetize its offerings, particularly as competition intensifies in the interactive content creation space. Additionally, an acquisition may be necessary to address these gaps, which could lead to increased financial strain and uncertainty surrounding future profitability.