AI Game Maker Sparks Outrage: The Bullish (and Bearish) Case

Unity is in damage control mode... just how concerned should you be? [Derby City Daily logo] [Derby City Daily logo] [AI Game Maker Sparks Outrage: The Bullish (and Bearish) Case]( By Andy Swan When consumers feel like corporations put profits ahead of providing a positive user experience, the results can be disastrous. For example, Snap ([SNAP]( rolled out a massive redesign to its Snapchat app in 2018 that was so despised, it nearly took down the company. “With almost 80% of Snapchat mentions turning negative in an ever-increasing volume of mentions, it's clear that Snapchat users are livid with the changes,” I wrote in a special report for Forbes at the time, noting the unique severity of the backlash. The update, which moved Snapchat’s “Discovery” section front and center to emphasize its sponsored content, was supposed to help Snap draw more revenue per user. Instead, it infuriated users to the point of mass exodus – driving them to ditch Snapchat for Instagram Stories in droves, and ultimately, sinking SNAP from $19 to $6 by the end of 2018. I can't help but feel that same sense of déjà vu with the seething reaction to Unity Software’s ([U]( newest update. The video game developer introduced a major departure to its pricing model earlier this month that’s not going down so well with users. And LikeFolio is recording an eerily familiar pattern in our real-time consumer insights... ✓ Unity sentiment plunged from 80% positive to 19% positive in a matter of days. ✓ “Unity alternative” searches surged upon the company’s announcement. ✓ And Unity’s stock price has taken a 20% hit in the days since. The thing is: Before this, Unity was a favorite among game developers with one of the highest Consumer Happiness scores in the LikeFolio universe (92% at one point). And with artificial intelligence (AI) momentum in play as a profit booster, [this stock was looking like a clear winner](. Now, the burning question is: Could Unity be headed for a Snapchat-style crash and burn in the stock market? Or, did this 8% stock price drop in the last five days create an attractive entry point? We’ll unpack what’s really going on with Unity and where we go from here. [Here’s the full story...]( [Click here to continue reading]( Until next time, [Andy Swan's signature] [Andy Swan's signature] Andy Swan Senior Analyst, Derby City Insights Discover More Must-Watch AI Picks for 2024 With our consumer insights machine tuned to AI, there are plenty more opportunities to uncover with Derby City Insights. Check out three on our radar right now... ✓ [An AI Up-and-Comer Ready for Liftoff]( With investors’ appetites whetted by Nvidia’s staggering 200%-plus rally, all eyes are on Arm’s recent AI IPO. But in the background, another AI stock is stirring – with LikeFolio data indicating it could be on the verge of a breakout. [Check this one out](. ✓ [Our Favorite Undercover AI Pick Under $5]( Demand mentions for this company are accelerating 133% year-over-year right now as it rides the hottest investing trend of 2023. You can still grab shares for less than $3 apiece as of this morning – but you have to act fast. This stock has already doubled since it first hit our radar... [Learn more](. ✓ [The Beaten-Down Stock Betting on AI]( Whether it’s searching agreement libraries, extracting agreement details, or suggesting language edits based on best practices, the strides this company is making with AI could revolutionize the way business gets done. But is it enough to bring its shares back to life? [Find out](. Get Instant Access Click to read these free reports and automatically sign up for research throughout the week. [25 Doomed Blue Chip Stocks]( [The Infinite Income Manifesto]( © 2023 TradeSmith, LLC t/a Derby City Insights. All Rights Reserved. 1125 N. Charles Street, Baltimore, MD 21201 To unsubscribe or change your email preferences, please [click here](. [Terms of Use]( | [Privacy Policy](