By Sam Boughedda
Investing.com — Unity Software Inc (NYSE:U) shares fell 3% on Thursday, despite Wedbush analyst Michael Pachter adding the company to the firm's Best Ideas List.
The analyst cited the stock's current price as a compelling entry point after a recent tech sell-off and said there are several potential long-term tailwinds. In addition, he pointed to the acquisition of Weta Digital.
Unity shares are down more than 32% in 2022 and have fallen over 36% in the last three months.
"We expect the Weta Digital acquisition to strengthen Unity's position within the gaming market and augment its expansion into non-gaming verticals," stated Pachter.
"Unity's focus on 3D content, technology suite, massive data set, customer list, and digital asset library should enable it to be among the key contributors to the development of the Metaverse," he added.
On Tuesday, Unity announced the acquisition of character design firm Ziva Dynamics.