Motley Fool Money Unity Soars and Airlines Could Be in Trouble
Nov 6, 2025
Join investing analyst Matt Frankel, known for his insight into company fundamentals, alongside stock selection expert Jon Quast. They delve into Unity Software’s impressive turnaround and the implications of recent leadership changes. The discussion shifts to the airline industry, highlighting significant flight cancellations and their ripple effects on travel-related sectors. Quast also shares his stock picks, including defensive strategies with Waste Management and opportunities in Farmer Mac and Pinterest amid market volatility.
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Unity Shows Early Turnaround Signs
- Unity reversed six quarters of revenue declines and grew revenue 5% in Q3 under new CEO Matt Bromberg.
- Free cash flow rose 31% and management expects accelerating growth into Q4, signaling a credible turnaround.
New CEO Brought Turnaround Experience
- Matt Bromberg came from Zynga where he helped lead a turnaround and has made product and value-focused changes at Unity.
- John Riccitiello was removed after poor decisions like an unpopular fee structure that hurt Unity's business.
Unity's Platform Extends Beyond Gaming
- Unity's core product is market-leading for 3D visual creation with applications beyond games, including automotive and robotics.
- That TAM could double by 2030, giving Unity meaningful adjacent-market opportunities.