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Globe and Mail
17-07-2025
- Business
- Globe and Mail
Why Unity Software Stock Keeps Going Up
Key Points Four separate analysts have recommended buying Unity Software stock in the last 24 hours. Morgan Stanley has the most interesting advice, recommending the stock, but seemingly at a price substantially lower than it costs today. Unity stock really is quite expensive for its growth forecast. These 10 stocks could mint the next wave of millionaires › More and more analysts are unifying behind a bull thesis on Unity Software (NYSE: U). Shares of the graphics software company rocketed 14% yesterday after Jefferies raised its price target to $35. Today, three more analysts are chiming in on Unity -- and the stock is up 10.8% through 9:55 a.m. ET. Valuing Unity stock In a trio of notes this morning, UBS raised its price target on Unity stock to $33, with a neutral rating; Wedbush raised its price target to $39 with an outperform recommendation; and Morgan Stanley ended with a good news/bad news note: Morgan Stanley analyst Matthew Cost writes today on The Fly that he's seeing "marked improvement" with Unity Ads sales up 15% to 20%. Unity has "produced a fundamentally more competitive ad product," says Cost, that's translating into tremendous sales growth. Is Unity stock a buy? But here's the weird part: Cost gives Unity stock an overweight rating, but only a $25 price target, which is below the $38 Unity stock costs today. So what's an investor to make of that? Morgan Stanley might have made a typo, and meant to value Unity stock higher. Alternatively, what Cost might be trying to say is that Unity would be a buy... at the right price. And that's a sentiment I agree with. With $308 million in trailing free cash flow and a $15.8 billion market cap, Unity stock now trades at a steep 51 price-to-free-cash-flow ratio. This seems expensive to me given most analysts forecast the company will grow FCF only about 26% annually over the next five years. But if you cut the stock's price 35% or so, to about $25 a share, $10.4 billion, or 33.5 times FCF, the valuation looks more attractive. At that price, I might even buy some myself. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $444,437!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $39,897!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $674,281!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of July 14, 2025
Yahoo
17-07-2025
- Business
- Yahoo
Why Unity Software Stock Keeps Going Up
Key Points Four separate analysts have recommended buying Unity Software stock in the last 24 hours. Morgan Stanley has the most interesting advice, recommending the stock, but seemingly at a price substantially lower than it costs today. Unity stock really is quite expensive for its growth forecast. These 10 stocks could mint the next wave of millionaires › More and more analysts are unifying behind a bull thesis on Unity Software (NYSE: U). Shares of the graphics software company rocketed 14% yesterday after Jefferies raised its price target to $35. Today, three more analysts are chiming in on Unity -- and the stock is up 10.8% through 9:55 a.m. ET. Valuing Unity stock In a trio of notes this morning, UBS raised its price target on Unity stock to $33, with a neutral rating; Wedbush raised its price target to $39 with an outperform recommendation; and Morgan Stanley ended with a good news/bad news note: Morgan Stanley analyst Matthew Cost writes today on The Fly that he's seeing "marked improvement" with Unity Ads sales up 15% to 20%. Unity has "produced a fundamentally more competitive ad product," says Cost, that's translating into tremendous sales growth. Is Unity stock a buy? But here's the weird part: Cost gives Unity stock an overweight rating, but only a $25 price target, which is below the $38 Unity stock costs today. So what's an investor to make of that? Morgan Stanley might have made a typo, and meant to value Unity stock higher. Alternatively, what Cost might be trying to say is that Unity would be a buy... at the right price. And that's a sentiment I agree with. With $308 million in trailing free cash flow and a $15.8 billion market cap, Unity stock now trades at a steep 51 price-to-free-cash-flow ratio. This seems expensive to me given most analysts forecast the company will grow FCF only about 26% annually over the next five years. But if you cut the stock's price 35% or so, to about $25 a share, $10.4 billion, or 33.5 times FCF, the valuation looks more attractive. At that price, I might even buy some myself. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $444,437!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $39,897!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $674,281!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 14, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group and Unity Software. The Motley Fool has a disclosure policy. Why Unity Software Stock Keeps Going Up was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
21-05-2025
- Business
- Globe and Mail
Is Take-Two Stock (TTWO) a Buy After Earnings?
Take-Two (TTWO) stock was up on Monday as analysts updated their coverage of the company following its latest earnings report. As a reminder, the video game publisher posted adjusted earnings per share of $1.07 on revenue of $1.58 billion, compared to Wall Street's estimates of $1.10 per share and $1.55 billion in revenue. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Despite those mixed results, analysts remain bullish on TTWO stock. Morgan Stanley analyst Matthew Cost maintained an Overweight rating and increased his price target to $265 from $210, representing a possible 13.35% upside for the company's shares. UBS analyst Chris Schoell kept a Buy rating for TTWO stock and increased the price target to $275 from $230, a potential 17.63% upside. Five-star Roth MKM analyst Eric Handler reiterated a Buy rating and $265 price target, implying a 13.35% upside for the shares. Analysts remain bullish on Take-Two stock as the company gears up to release Grand Theft Auto VI on May 26, 2026. This could be a huge catalyst for TTWO shares as its predecessor, Grand Theft Auto V, is the second-best-selling game in history with over 215 million units shipped. Even a fraction of those sales could be a huge win for Take-Two and its investors. TTWO Stock Movement Today While Take-Two had to delay Grand Theft Auto VI to 2026, and its latest earnings were mixed, TTWO stock has remained a strong investment in 2025. The company's stock jumped 3.05% on Monday morning, and has rallied 26.93% year-to-date. Is TTWO Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Take-Two is Strong Buy, based on 15 Buy ratings over the last three months. With that comes an average TTWO stock price target of $253.60, representing a potential 8.3% upside for the shares. See more TTWO stock analyst ratings Disclaimer & Disclosure Report an Issue
Yahoo
16-02-2025
- Automotive
- Yahoo
2 Monster Stocks to Buy Before They Soar 150% and 630%, According to Certain Wall Street Analysts
Tesla (NASDAQ: TTD) and The Trade Desk (NASDAQ: TSLA) generated monster shareholder returns of 555% and 163%, respectively, over the past five years. And certain Wall Street analysts think that momentum will carry into the future, as detailed below: Analysts led by Tasha Keeney at Ark Invest have set Tesla with a 2029 target of $2,600 per share. That forecast implies 630% upside from its current share price of $356. Matthew Cost at Morgan Stanley has set The Trade Desk with a 12-month bull-case target of $200 per share. That forecast implies 150% upside from its current share price of $80. Here's what investors should know about these monster stocks. Despite losing market share in the U.S. and China, Tesla retained its leadership position in electric car sales in 2024. But the company struggled with weak demand throughout the year, driven by increased competition and high interest rates. And price cuts meant to lure potential buyers cut deeply into profitability, which led to a series of disappointing financial results. In the fourth quarter, total revenue increased 2% to $26 billion, reflecting strong growth in the energy business offset by a decline in automotive sales. Meanwhile, operating margin contracted 2 percentage points, and non-GAAP net income increased just 3% to $0.73 per diluted share. Also noteworthy, Tesla reported an annual decline in vehicle deliveries for the first time in company history. However, CEO Elon Musk shared good news on the fourth-quarter earnings call: This June, Tesla will begin offering autonomous ride-sharing (robotaxi) services in Austin, and other U.S. cities will follow shortly thereafter. "I expect us to be operating unsupervised activity with our internal fleet in several cities by the end of the year," Musk told analysts. Importantly, Ark Invest's target of $2,600 per share assumes total revenue will reach $1.2 trillion by 2029, and that robotaxis will account for about $750 billion of that figure. But that implies annual revenue growth of 65% in the next four years. Even if Tesla has a booming robotaxi business by then, that estimate seems too optimistic when the entire ride-sharing market was worth less than $50 billion last year. That said, demand for ride-sharing services could increase rapidly in the future as robotaxis reduce costs. For instance, Ark Invest estimates the addressable market will be $10 trillion by 2030. Assuming that estimate is correct, Tesla's robotaxi revenue could theoretically hit $750 billion with less than 10% market penetration. But I am still very skeptical about the timeline. Wall Street expects Tesla's adjusted earnings to grow at 22% annually through 2026. That makes the current valuation of 147 times adjusted earnings look absurdly expensive. There is only one way that multiple looks sensible in hindsight: Earnings growth must accelerate substantially as Tesla monetizes robotaxis and robotics. Investors that lack confidence in that narrative should avoid the stock. However, investors that believe Tesla can disrupt the mobility industry should own a position. Now is as good a time as any to buy a few shares, though I doubt the stock will return 630% by 2029. The Trade Desk specializes in digital advertising. Its demand-side platform (DSP) helps ad agencies and brands automate, optimize, and measure data-driven ad campaigns across digital channels. It was among the first ad tech companies to add artificial intelligence to its software, and CEO Jeff Green says it still has "the most advanced data-driven decision-making platform" in the industry. The Trade Desk competes giants like Alphabet and Meta Platforms, but its independence is an important advantage. Specifically, The Trade Desk does not own ad inventory, which eliminates the conflict of interest inherent to many competitors. For example, Alphabet has a clear incentive to steer media-buyers toward advertising inventory on Google Search and YouTube. Additionally, because The Trade Desk does not compete with publishers (companies that sell ad inventory), those publishers willingly share data. That means The Trade Desk can offer clients measurement capabilities not available on competing platforms. For instance, the company has partner with many the largest retailers, such that it has "the industry's richest retail data environment," according to Jeff Green. The Trade Desk delivered disappointing financial results in the fourth quarter, missing its revenue guidance for the first time in 33 quarters. Specifically, revenue increased 22% to $741 million, well short of the forecasted $756 million, and non-GAAP earnings increased 44% to $0.59 per diluted share. Jeff Green attributed the revenue shortfall to a "series of small execution missteps," and he detailed changes the company has made to correct the problems. That includes reorganizing to improve efficiency, building relationships directly with brands rather than working exclusively with ad agencies, and shifting product development to small weekly updates rather than larger but less frequent releases. Importantly, Morgan Stanley's bull-case target of $200 per share assumes revenue grows at 29% annually through 2027. That is plausible given that ad tech spending is projected to increase at 22% annually through 2030. But investors would also need to afford The Trade Desk a much higher price-to-sales multiple, which makes the $200-per-share target a long shot at best. However, The Trade Desk is still an attractive investment. The stock currently trades at 44 times forward earnings, a substantial discount to the two-year average of 57 times forward earnings. Investors with a time horizon of at least three to five years should feel comfortable buying a position today. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $360,040!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $46,374!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $570,894!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of February 3, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Tesla and The Trade Desk. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Tesla, and The Trade Desk. The Motley Fool has a disclosure policy. 2 Monster Stocks to Buy Before They Soar 150% and 630%, According to Certain Wall Street Analysts was originally published by The Motley Fool
