It's official: Unity Software 's (NYSE: U) acquisition of digital advertising platform ironSource is complete. Since the deal was finalized and Unity announced its third-quarter earnings report, the stock has gone from $21.50 (on Nov. 9) to over $40 a share at the beginning of December.
The market must be pleased with this tie-up between a leader in 3D content creation and an app monetization outfit like ironSource, right? Not so fast. Even with ironSource now in the fold, Unity should still be viewed as a high-risk stock -- one with an uncertain payoff in the coming years. Here's why.
Unity stock may have been sold off hard in early November as investor angst built about a possible recession next year . As such, a relief rally may have been in order, but Unity stock is also up so much in the past month because the U.S. Federal Reserve indicated it will begin moderating its pace of interest rate hikes. Fed chair Jerome Powell has said just a 0.5% hike is on the table for December, versus the 0.75% hikes at recent meetings. However, Powell also said the fight against inflation isn't over yet.
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Unity Stock Remains a High-Risk, High-Reward Bet After ironSource Merger