Why Unity Software Is Trading Higher Today

Unity Software Inc U is trading higher Wednesday morning after the company reported better-than-expected first-quarter earnings and revenue.

What Happened: Unity reported first-quarter financial results after the close Tuesday. The company reported an earnings loss of 10 cents, which beat the estimate for an earnings loss of 12 cents. It reported revenue of $234.77 million, which beat the estimate of $216.6 million. Unity increased its guidance for full-year 2021 by $50 million.

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“Our first quarter results are reflective of the powerful transition from linear 2D to real-time 3D, which is one of the most important changes in how people interact with technology. We believe that real-time 3D will continue to grow at an accelerated pace and achieve massive scale," said John Riccitiello, president and CEO of Unity.

Stifel analyst Tom Roderick upgraded Unity from Hold to Buy and announced a $125 price target.

Price Action: Unity traded as high as $174.94 and as low as $65.11 over a 52-week period. At last check Wednesday, the stock was up 5.28% at $89.