When ALL stocks move the same direction, I don’t think too much about “is the move specific to a company?”.
Today, U Stock price is moving OPPOSITE the crowd.
TMF writer Jon Quast explains.
Why Unity Stock Plunged Today Whereas ironSource Stock Skyrocketed
https://www.fool.com/investing/2022/07/13/why-unity-stock-pl…
A merger with Iron Source (IS):
The all-stock deal values ironSource at $4.4 billion. The market capitalization of ironSource was around $2.3 billion prior to the announcement, so Unity is paying a significant premium for the company.
87%. A significant premium indeed!
There will be some Unity share dilution.
But, Jon says “Unity … also announced a $2.5 billion share repurchase program. And two of Unity’s largest shareholders are committing $1 billion each in convertible notes.”
Hmmm. Why would U use the dollars in a buy back, rather than do a cash+stock deal for IS?
Yahoo Finance says U has $1.81B in cash, and $1.82B in debt.
https://finance.yahoo.com/quote/U/key-statistics?p=U
Ie U doesn’t have the $.
I like U for 2 reasons: it’s a strong Gaming platform, and it offers tools that automate coding for App development to gamers and others.
I owned some U, but sold it, as it was a “low conviction”.
Lucky me.
ralph