Unity weakness overdone, presents buying opportunity, says William Blair

William Blair reiterated a Buy rating on Unity (U), noting the drop in shares following a blog post in which Google (GOOGL) said it would begin offering experimental prototype access to its interactive world model and creation engine, Project Genie, to U.S. Google AI Ultra subscribers. Fears seem centered on the perceived competitive threat to Unity’s Create business, which is currently being used by roughly 70% of all mobile games, the analyst tells investors in a research note. The firm believes the negative stock reaction is overdone, with fears overblown on something that is likely to further increase the reliance of Unity’s platform for runtime operations over time.