| Actionable Trade Idea: Buy Unity Software (U) up to $38 per share. We believe this stock could gain by more than 125% within the next two years. *Note: On all trades, it is important to use proper risk management to correctly allocate and protect your capital. More than 3.24 billion people worldwide play games online, and 79% of internet users play games regularly. It's a massive industry: Global consumer spending in the video game sector could reach $334 billion this year before exploding to nearly half a trillion dollars by 2027. Innovations like artificial intelligence (AI), virtual reality (VR), and the metaverse are leveling up the gaming experience and attracting new players at breakneck speed. AI is even turning players into creators: With prompts, gamers can use generative AI to create entire gaming worlds from scratch with zero coding experience. And Unity Software (U) is enabling this transformation with software that makes game development accessible to everyone. The company's real-time 3D development tools and services allow customers to create, run, and monetize interactive 2D and 3D content for PCs, tablets, mobile phones, gaming consoles, and AR/VR (augmented reality and virtual reality) devices. And it leverages blockchain technology to make it all happen. You may recognize Unity as one of the picks from our special report, The Power of Blockchain. Since then, Apple (AAPL) revealed it will lean on Unity's developer community to provide 3D apps for the Apple Vision Pro mixed-reality headset. While the jury is still out on the product's adoption, the high-profile partnership could make Unity the go-to platform for 3D developers, boost its subscriber base, and give it a second major market to complement its core gaming business. On the consumer front, LikeFolio data points to rising demand and buzz for Unity's products, which should only strengthen as tech spending budgets expand. And with the stock price pulling back under $38, we see an ideal entry point for LikeFolio Investor subscribers to get in on a rising AI player. With a bullish Social Heat Score of 71, we're issuing a buy alert on U today. 
Take a look at how Unity is using emerging technology to boost its business – and why we believe this stock could gain 125% within the next two years... Competitive Analysis: Unity Is Distancing Itself from Its Peers As a leading game-engine developer, Unity is paving the way for next-gen gaming experiences and metaverse creations – and it's doing that while outperforming other application software players in both consumer demand and happiness. 
๐ก The Outlier Grid above reveals potential opportunities by comparing Purchase Intent growth (x-axis) against Consumer Happiness (y-axis). Tomorrow's big winners are often found in the top right quadrant, which constitutes ideal bullish positioning. Consumer Demand: Interest Grows Amid Stock Pullback U Purchase Intent — consumer mentions of subscribing to Unity software and services — have doubled quarter-over-quarter on a 30-day average. 
U is benefiting from increased demand for software that powers 3D experiences across several industries. Together with price increases, this has brought its $100K+ customer base to 1,330, a 23% year-over-year jump (in a challenging macro environment). Game developers and other creators are turning to Unity's expanding platform to build products such as the critically acclaimed Humanity and Convergence: A League of Legends Story games. And with an emerging disconnect between consumer demand and Unity's stock price, we believe U could see significant share price appreciation in the months ahead. Consumer Buzz: Mentions, Web Visits Rising A surge in U mention volume mostly reflects consumers' increasing use of Unity software to develop unique games and metaverse projects. 
Rising brand awareness is corresponding with stronger-than-expected financial performances, including the 80% year-over-year revenue growth recorded in the second quarter. Also of note here: Global website traffic is up 12% year-over-year in the wake of the company's shift towards subscription and consumption business models. 
Consumer Happiness: Sentiment Is Largely Positive Consumer sentiment mentions for U are 71% positive over the past month. While Consumer Happiness is down versus the prior year, Unity remains ahead of most large-cap software peers in this key metric. 
Unity has enhanced its core gaming business by launching Unity Sentis for AI model deployment and Unity Muse, an AI-powered tool that accelerates real-time 3D content creation. Creators are enamored with the ease of use, quality, durability, and capabilities of Unity's 3D modeling platform. 
Macro Tailwinds: Blockchain, Metaverse, and AI, Oh My! Unity has introduced several blockchain-based integration options that allow developers to easily integrate digital identity, tokens, and non-fungible tokens (NFTs) into their games and applications, paving the way for a new generation of decentralized gaming experiences and metaverse creation. ✓ Blockchain Technology
Blockchain technology is empowering consumers and businesses to cut out the middleman, lower costs, and operate more efficiently. Consumer mentions of blockchain tech continue to rise – trending 94% higher year-over-year as of this writing. 
✓ Artificial Intelligence
The gaming landscape is undergoing a radical transformation thanks to artificial intelligence – and Unity is leading the charge. Along with establishing a new AI software marketplace on the Unity Asset Store, AI investments are bringing Unity creators enhanced digital speed, productivity, and creativity. ✓ Metaverse
While metaverse buzz has cooled in 2023, the technology's potential to reshape the way we live, work, and play makes it one to watch. Unity operates right at the intersection of blockchain tech and gaming – enabling it to tap into the vast potential of the metaverse. 
The Bottom Line With exposure to multiple high-growth areas including blockchain gaming, AR/VR, the metaverse, and more, Unity's software applications are more relevant than ever. And as shares trade more than 80% below their November 2021 peak, U has tremendous upside for forward-thinking investors. Until next time, | 
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