NVDA
NVIDIA
-- 109.670 TSLA
Tesla
-- 263.550 PLTR
Palantir
-- 85.850 AMZN
Amazon
-- 192.720 AAPL
Apple
-- 217.900 
The new CEO needs to make more bold improvements.
In January and February, Unity laid off many low-level employees, and senior-level employees were hardly affected. It was only after the new CEO came on board that a few big fish were laid off, which is far from enough.
The stock incentives at Unity make up a high proportion of the compensation, as many analysts have emphasized. When the stock price falls, more stocks need to be issued to attract or retain people, because the company needs to issue bonds to maintain cash. This inadvertently creates a vicious cycle.
Many executives have a staggering number of stocks, but they are still issuing more. Look at the company's stock ownership information changes announcement for the whole of June. All the shareholdings are newly approved compensation shares by the board of directors, not private buybacks. Many stocks were also released during the acquisitions 1-2 years ago, and now that the lock-up period has passed, they are starting to dilute the market. The company seemed to have proposed a $2 billion stock buyback in 2022, lasting until 2024, but by the end of 2023, $1.5 billion had already been used, and many big fish successfully exited last year.
Unity is a product that I have always used, but the monetization of the product cannot support such a high market cap. That is why Unity has its own advertising platform. Strictly speaking, the value of Unity's stocks comes from the advertising platform, not the Unity game engine itself. Many retail investors are fond of games or developing engines. This belongs to faith. Unfortunately, this huge faith only accounts for 30% of the revenue.
Unity needs a bold and thorough operation to integrate IronSource. The significant layoffs at the beginning of this year indicate that IronSource may still be in a protection period due to acquisition. Removing the compensation for the layoffs will reveal the overall unreasonable losses, suggesting that the advertising integration has not been successful. If the market cap continues to decline or remains in its current slump, another round of restructuring may be necessary, reducing the number of employees to below 4,000, reducing the ratio of operation investment, and increasing profitability. Following various failed integration cases, advertising business is a crucial part that must achieve success.
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一朝游戏一航梦 : Thank you for sharing There aren't many reviews like this.