What Happened?
A number of stocks jumped in the pre-market session after reports revealed that the U.S. may be willing to end its military campaign against Iran.
The tech-heavy Nasdaq Composite index rose 1.5%, while the broader S&P 500 also saw gains, recovering from recent declines. For weeks, markets were weighed down by investor anxiety stemming from the conflict, leading to what some analysts described as "severely oversold" conditions. The potential for de-escalation sparked a relief rally, as easing geopolitical tensions often reduce market uncertainty and encourage investment back into riskier assets like stocks.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Customer Experience Software company Sprinklr (NYSE: CXM) jumped 5.2%. Is now the time to buy Sprinklr? Access our full analysis report here, it’s free.
- Project Management Software company Asana (NYSE: ASAN) jumped 3.7%. Is now the time to buy Asana? Access our full analysis report here, it’s free.
- Design Software company Unity (NYSE: U) jumped 5.7%. Is now the time to buy Unity? Access our full analysis report here, it’s free.
- Data Infrastructure company C3.ai (NYSE: AI) jumped 5.1%. Is now the time to buy C3.ai? Access our full analysis report here, it’s free.
- Data Storage company DigitalOcean (NYSE: DOCN) jumped 5.6%. Is now the time to buy DigitalOcean? Access our full analysis report here, it’s free.
Zooming In On Unity (U)
Unity’s shares are extremely volatile and have had 62 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 10.9% on the news that the company announced preliminary first-quarter 2026 results that significantly surpassed its previous guidance and revealed plans to streamline its operations.
Unity stated it expected revenue between $505 million and $508 million, well above its earlier forecast of $480 million to $490 million. The profit outlook was even stronger, with adjusted EBITDA anticipated to be between $130 million and $135 million, compared to the prior guidance of $105 million to $110 million. Alongside the strong financial update, Unity announced several key business changes.
The company decided to shut down its ironSource Ads Network and engaged a financial advisor to explore the sale of its Supersonic game publishing business. Furthermore, reports indicated Unity was selling its China division for over $1 billion to reduce geopolitical risk and focus on its core game engine and advertising business.
Unity is down 50.9% since the beginning of the year, and at $21.73 per share, it is trading 56.1% below its 52-week high of $49.47 from December 2025. Investors who bought $1,000 worth of Unity’s shares 5 years ago would now be looking at only $216.60.
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