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Unity Software Shares Surge After Cryptic Post by ‘Roaring Kitty’

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Unity Software’s shares surged nearly 10% on Thursday following a cryptic social media post by Keith Gill, famously known as “Roaring Kitty,” on platform X. The post reignited enthusiasm for the video game software maker, marking a strong start to 2025 after a tumultuous year.

Gill, who rose to prominence during the 2021 meme stock frenzy that fueled GameStop’s dramatic rally, shared a clip referencing late musician Rick James, who featured in a song titled “Unity.” The subtle nod sparked renewed investor interest in Unity’s stock.

If gains hold, Unity could add over $700 million to its market valuation. Shares climbed to a high of $26 on the first trading day of 2025.

Meme Stock Influence

Art Hogan, chief market strategist at B. Riley Wealth, highlighted the impact of meme stock culture, stating, “The leader of the meme stock post on social media, whether it’s Reddit or X, you’re certainly going to see that reaction by that small army of meme stock players — that’s what we’re seeing again today.”

Challenges and Recovery

Unity Software faced a challenging 2024, with its stock plummeting 45% amid backlash over its controversial “runtime fee” pricing policy introduced in 2023. The policy, which sparked outrage among video game developers, was scrapped in 2024.

The company also underwent significant restructuring, cutting 25% of its workforce in 2024 after an 8% reduction in 2023, as it shifted focus toward profitability. Despite these challenges, Unity remains a critical player in the gaming industry, with its software toolkit powering popular titles like Pokemon Go, Beat Saber, and Hearthstone.

Gill’s Influence and Meme Stock Trends

Keith Gill’s influence on stock movements continues to captivate meme stock enthusiasts. However, his past moves have had mixed results. For instance, Gill’s June 2024 livestream failed to generate excitement for GameStop, causing its stock to tumble. Similarly, his dissolved stake in pet retailer Chewy last year had minimal impact on the market.

Thomas Hayes, chairman at Great Hill Capital LLC, expressed skepticism over the sustainability of meme stock trends. “You would think people would have learned by now that playing these silly reindeer games end in tears… it’s not the way to invest,” Hayes remarked.

Unity’s latest rally underscores the persistent influence of social media and meme culture on the stock market, even as traditional investors urge caution.

 

23andMe Announces Major Layoffs and Reports Revenue Decline Amid Strategic Shift

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On Tuesday, genetic testing company 23andMe reported a revenue decline for its latest fiscal quarter, following its announcement of significant workforce reductions and the closure of its therapeutics division. The company’s revenue for the fiscal second quarter dropped to $44.1 million from $50 million during the same period the previous year. However, 23andMe did report a reduced net loss, down to $59.1 million (or $2.32 per share), compared to a loss of $75.27 million (or $3.17 per share) a year prior.

As part of a restructuring plan, 23andMe revealed on Monday that it would cut 40% of its workforce, impacting over 200 jobs, and wind down all therapeutics programs and ongoing clinical trials. The company is exploring options, including asset sales and licensing agreements, to derive value from its existing therapeutic programs. CEO Anne Wojcicki expressed gratitude to the affected employees and underscored the importance of these steps to refocus on the company’s core consumer services and research collaborations.

The company’s shares have seen significant drops, falling slightly on Tuesday and down roughly 75% for the year. 23andMe has struggled with maintaining its Nasdaq listing, with shares previously below $1 until an October 1-for-20 reverse stock split. In September, all seven independent board members resigned, citing disagreements with Wojcicki regarding the company’s strategic direction. Since then, three new independent directors have joined the board.

Wojcicki has indicated her intention to take 23andMe private, emphasizing that this direction is the most viable for the company’s future. During Tuesday’s earnings call, she stated that the company had taken steps to regain Nasdaq compliance by reconstituting its board and implementing the reverse stock split. Although she did not discuss privatization plans in detail, a September SEC filing reaffirmed her commitment to pursue this path without considering third-party acquisition offers.