Unity Software (U) Jumps 6.6% on Strong Buy Reco
Unity Software jumped for a third day on Monday, adding 6.62 percent to close at $27.86 apiece as investors continued to scoop up shares following an investment firm's 'strong buy' recommendation on its stock.
In a market note last week, Wedbush said its bullish rating for Unity Software Inc. (NYSE:U) was due to expectations of posting earnings per share of $0.31 for the second quarter of the year.
Additionally, it expects the ad tech company to post EPS of $0.29 in the third quarter, $0.23 in the fourth quarter, and $1.25 for the full year 2025.
A computer scientist programming in an office, demonstrating the company's innovative and modern approach to finance.
In 2026, Wedbush projects Unity Software Inc. (NYSE:U) to book $0.24 EPS in the first quarter, $0.25 in the second quarter, and $0.27 both for the third and fourth quarters.
For full-year 2026 and 2027, Wedbush expects the company's EPS to be at $1.02 and $0.94, respectively.
While we acknowledge the potential of U as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
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Follow him on Bluesky and X: @rickjnewman. Click here for political news related to business and money policies that will shape tomorrow's stock prices. Sign in to access your portfolio
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The employment numbers aren't rigged, and the few serious economic people in Trump's administration — Treasury Secretary Scott Bessent, White House economist Kevin Hassett — ought to be telling him that. A lot of economic data is unflattering to Trump, however, and there's a good chance it will get worse as tariffs and migration raids further stifle the economy. Trump acts like he knows it, and has been thinking for some time about how to provide alternate data that's more flattering to the Trump economy. For most of his second term, Trump has been raging about Federal Reserve Chair Jerome Powell, demanding that the Fed slash interest rates and musing about firing Powell. Trump has also floated the idea of appointing a 'shadow' Fed chair who would give more upbeat assessments of the economy than the Fed's sober analysis, and perhaps replace Powell when his term expires next Trump's commerce secretary, Howard Lutnick, wants to change the way the government calculates economic growth. 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The simple reality is that nobody, not even the president, can fool markets, at least not for very long. Official government data is important, but businesses, investors, and consumers rely on thousands of data points that tell them almost everything they need to know about how the economy's doing. Presidents have tried many times to generate a counternarrative meant to persuade voters they're better off than they think they are. It never works. Ordinary workers know how far their paycheck stretches and whether they're getting ahead or falling behind. Most can tell you that without knowing whether the inflation or unemployment rate is going up or down. Businesses know what's happening with their order book and cash flow, and spend more or less accordingly. Investors read pricing signals the government can't control and buy, sell, or hedge based on what they see. 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That was a very unusual move, suggesting investors foresaw higher inflation over a five- to 10-year time frame and demanded higher rates to buy bonds maturing during that time. Still, Trump has inherited a dyspeptic bond market, and his tariffs clearly contribute to inflation expectations because they're a tax on imports that literally raises prices paid by businesses and consumers. Another problem is the massive amount of US government borrowing, which may finally be approaching unsustainable levels. If or when the day arrives when there aren't enough buyers for Treasury securities, the only outcome can be higher rates for all bonds to entice buyers. And higher long-term interest rates raise costs for every business or consumer borrowing money. The weird pricing action from last fall shows that if Trump did manage to force the Fed to slash short-term rates, long-term rates might actually rise, because investors would anticipate higher inflation due to looser monetary policy. Trump doesn't care about short-term rates, which only apply to banks making overnight loans. What he really wants is lower long-term rates, so that businesses and consumers borrow and spend more, stoking growth. Trying to force that to happen would probably have the opposite effect. The same thing would happen if Trump tried to fool the world by publishing bogus data showing the economy doing better than it really is. Every serious investor would know it's a sham. Uncertainty would worsen as opacity on some facets of the economy replaced transparency. That would cause upward pressure on the interest rate risk premium, pushing rates higher. Brusuelas's data shows a risk premium of more than 2 percentage points during some periods during the last 25 years. If there were such a premium today, the typical mortgage rate would be more than 8%, instead of 6.7%. In 2008, during the financial crisis, the term premium approached 4%, which would push interest rates today above 10%. That's the range, or trouble, Trump could cause in bond markets if he tries to manipulate the economy and fails. Would it cause a recession? Nobody knows, but that may be the wrong question. Americans are in a foul mood largely because they think management of the economy stinks and they feel prosperity slipping away. When Joe Biden was president, he repeatedly touted record job growth and other things going right, convincing approximately nobody that they were better off than their personal finances led them to believe. Americans want to feel like they're getting ahead at home and at work. Legitimate data won't convince them if they don't see it happening in their own lives, and bogus data won't do any better. Consumer attitudes have been at recessionary levels for much of the last five years, and if Trump starts producing doctored data, it may depress people even more. Truth has value, even to Trump. Rick Newman is a senior columnist for Yahoo Finance. Follow him on Bluesky and X: @rickjnewman. Click here for political news related to business and money policies that will shape tomorrow's stock prices. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
