Unity Software Inc. (U) shares are up 3.10% to $24.26 as of 3:01 pm on Monday, compared to its previous close of $23.53 on November 22nd. The stock's rise comes amid a decrease in short interest, which has fallen by 5.04% since the last report, indicating a shift in market sentiment towards a more bullish outlook. Unity's short interest now stands at 6.4% of its float, which is lower than the average of its peers. This reduction in short interest suggests that investors are becoming more optimistic about Unity's prospects, potentially driven by recent strategic shifts and leadership changes that have refocused the company on its core game engine product.
Additionally, Unity's recent financial performance has shown signs of recovery, with the company reporting $92 million in EBITDA for Q3 2024, surpassing its forecast. The company's efforts to rebuild trust with its user base, including the cancellation of a controversial runtime fee, have also contributed to its positive momentum.