Unity Software (U), a gaming platform provider did not post a promising fourth quarter like it did in Q3. U stock fell by around 19% last night after reporting $609 million. Unfortunately, most of the revenue is due to a one-time single transaction.
Read this U stock prediction, where we expected a weak earnings report could send the stock in the $20 - $25 range:
https://www.baystreet.ca/stockstowatch/17253/Hottest-Trades-After-Their-Report-Baidu-Dominos-Best-Buy-and-More
Unity lost 66 cents a share when analysts expected only a 45 EPS loss. In Q1, the revenue guidance of between $415 million to $420 million is below analyst consensus estimates of $536 million.
Workday (WDAY) will trade around 8% lower after it issued a weak 2025 sales guidance. Its subscription revenue of between $7.73 billion to $7.78 billion is lower than analysts expect. The firm is also acquiring startup HiredScore. The announced acquisition adds uncertainty for its shareholders.
Economics
Later this week, the PCE index on Thursday will give investors a better picture of inflation. This is the preferred inflation gauge for the Federal Reserve. Markets will not hit interest-sensitive stocks hard today. They will, however, sell heavily indebted firms. This includes telecom stocks like BCE, AT&T (T), and Verizon Communications (VZ).
