There have been reports of one or more large block trades of U stock in the immediate aftermath
Unity Software (NYSE:U) stock rallied 17% on 2025’s first morning of trading after famous social media personality Keith Gill, also known as “Roaring Kitty”, published a cryptic post on X.
Gill’s post included a brief clip of comedian Dave Chappelle imitating singer Rick James, who had a hit song in 1983 called “Unity.”
— Roaring Kitty (@TheRoaringKitty) January 2, 2025
Gill is known for previously promoting meme stocks such as GameStop (NYSE:GME) and Chewy (NYSE:CHWY).
Following his tweet, there have been reports of one or more large block trades of U stock, possibly totaling as many as 1.32 million shares.
San Francisco-headquartered Unity Software provides software solutions for gaming and 3D content rendering, and is considered to be a major AI and web3 stock. Its share price declined 45% in 2024.
Unity Software reported third-quarter 2024 revenue of $446.52 million and an earnings loss of $0.31 per share. This contrasts unfavorably with the company’s revenue of $544.21 million and earnings of $0.18 per share (gain, not loss) in the year-earlier quarter.
Analysis: Don’t read too much into it
U stock spiked quickly Thursday morning. However, only time will tell whether the firm can turn around its sales and earnings in 2025.
In other words, Unity Software’s fundamentals didn’t suddenly change today. Furthermore, it’s not known whether Gill’s X post was intended to promote Unity Software.
One X poster suggested that Gill’s enigmatic post may have only been a call for unity among traders of other meme stocks.
My tinfoil hat theory is that this isn't much to do with unity the stock, but perhaps RK is trying to call for the gme and amc community for unity. If RK reveals that he's got a sizeable stake in #AMC, my port is going to be on roids for the foreseeable future.
— Nick Ronin (@NickMD_RoninIll) January 2, 2025
Investors who read too much into Gill’s postings or who chase after meme stock trends generally put themselves at risk of rapid financial losses. In this instance, Gill’s post did not even mention Unity Software specifically and certainly did not present new, material data about the company.
For the time being, however, it will be difficult to convince meme stock traders to focus on fundamentals as Unity Software stock rallies sharply to kick off the new year.
