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'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.
Re-Rate Stocks After Management Change
- Re-evaluate companies after new management arrives because leadership change can alter long-term outcomes.
- Look for concrete operational fixes like reduced stock-based compensation before changing your investment stance.
Stock-Based Compensation Hurts Returns
- Unity's heavy stock-based compensation drove revenue-per-share dilution and needed trimming to improve shareholder returns.
- Bromberg has reduced it, but Quast says it's still a work in progress.