Software stocks are falling sharply after disappointing earnings and guidance from companies like Dassault Systèmes and Unity Software, raising worries about AI disrupting traditional business models.
Unity Software reports Q4 2025 earnings with strong growth but issues lower-than-expected Q1 2026 revenue guidance, causing shares to tumble over 26% in premarket trading.
Oppenheimer upgrades Unity to Outperform, citing strong fundamentals, cost discipline, and growth potential despite AI fears.
Unity, Roblox, and Take-Two shares fell sharply after Google launched Project Genie, an AI tool that creates 3D virtual worlds from text prompts, sparking competition concerns.
Unity receives upgrades from BTIG and Piper Sandler, citing stronger ad performance, industry tailwinds, and underappreciated growth levers. Analysts raise price targets to $59–$60.
Wells Fargo upgrades Unity to Overweight with a new $51 price target, citing strong 2026 mobile game advertising tailwinds and growth potential.
