Unity Software Stock Is Sinking After Earnings. One Analyst Cut His Rating.

Unity Software

shares were sinking Thursday after the company reported fourth-quarter results and provided an outlook that disappointed Wall Street—prompting one bullish analyst to downgrade the stock.

Unity (ticker: U), which sells tools that developers artists use to make and monetize videogames and other visual projects, reported a net loss of 82 cents a share, compared with consensus estimates at 42 cents a share, according to FactSet. Sales of $451 million topped expectations of $437.9 million. The company said it expects first-quarter revenue to come in between $470 million and $480 million, compared with analyst expectations for $520.5 million. For the full year, the company expects revenue between $2.05 billion and $2.2 billion.