Unity Software shares rally after block trades, Roaring Kitty post

Investing.com -- Unity Software (NYSE:U ) shares jumped more than 8% in premarket trading Thursday following a block trade of 1.32 million shares valued at $29.7 million on Tuesday night.

Social media activity surrounding the company has surged, with posts about Unity quadrupling in recent hours. Sentiment on X has been largely positive.

Adding to the speculation, Roaring Kitty — the alias of Keith Gill, known for driving the GameStop (NYSE:GME ) trading frenzy — posted a short clip featuring the late musician Rick James, who famously recorded a song titled “Unity.”

Unity Software has faced challenges this year, with its stock down 39% in 2024, while competitor AppLovin (NASDAQ:APP ) has seen its shares skyrocket by 747% during the same period.

As is often the case with Roaring Kitty’s posts, the clip may not be directly related to Unity Software and could instead signal a broader message about unity or something unrelated altogether.

In November, Unity Software reported mixed results for the third quarter, as revenue exceeded expectations but earnings fell below forecasts.

The company reported an adjusted loss per share of $0.31, missing the analyst projection of $0.14 in earnings. Revenue for the quarter reached $446.52 million, surpassing the consensus estimate of $428.42 million and reflecting year-over-year growth.

Unity expects fourth-quarter revenue to be between $422 million and $427 million, with the midpoint slightly ahead of the analyst estimate of $424.9 million. However, its full-year 2024 revenue guidance of $1.703 billion to $1.708 billion came in lower than the $1.766 billion analysts had anticipated.

Source: Investing.com