Unity Software (NYSE:U), which develops the Unity Engine for video games and other applications, went public in September at $52 per share. It raised over $1.3 billion in its debut, and its stock subsequently surged to nearly $170 in early December before pulling back to the mid-$140s, which gives it a market cap of nearly $40 billion.
Unity clearly generated some big gains for investors over the past three months, but can it generate more millionaire-making returns in the future? Let's dig deeper into its core business and valuations to find out.
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How does Unity make money?
Unity launched its first game development platform in 2004, which bundled together cross-platform rendering, lighting, physics, sound, animation, and user interface tools. In the past, developers created those features individually for different platforms, which was often a buggy, expensive, and time-consuming process.