Piper Sandler views Friday’s selloff in gaming related names, including Unity (U) and Roblox (RBLX), is “indiscriminate and overdone.” However, in the backdrop of software weakness and “insurgent AI capabilities like Project Genie, it’s tough to fight the tape,” the analyst tells investors in a research note. Piper attributes Friday’s pullback in part to end of January exchange traded fund “purges.” It stills like the setup for Unity into earnings. Roblox “looks washed out on a multiple basis,” the analyst adds.
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