Applovin Corp. (APP) was one of 2024’s standout performers, rising from $16 in mid-2023 to nearly $500 over the following years. However, in early 2025, APP faced significant selling pressure, declining more than $200 per share and signaling waning momentum. With a Price/Earnings ratio still above 100 and technical indicators showing a decline in relative strength and current position in the unfavored zone of the SIA Russell 1000 Index Report, APP could be vulnerable to further downside if key support levels fail. This shift may create an opportunity to consider alternative players in the ad tech space such as Unity Software, whose AI-driven ad platform Vector could position it for renewed growth and market relevance.
We are drawn to Unity’s new Ai ad engine, Vector, which may be an exciting development capable of redefining the company’s growth trajectory. Vector replaces older systems by using Unity’s vast user data to deliver smarter, self-learning ad optimization. Early indications suggest a 15-20% boost in installs and in-app purchases. These gains are supported by financial results. In the first quarter of 2025, Unity’s Grow segment revenue reached $285 million, exceeding guidance, while adjusted EBITDA rose 29% above expectations, partly due to Vector’s rollout. Compared to AppLovin’s Axon platform, which remains strong but is reported to be facing trust issues among developers, Vector is said to offer cleaner integration and improving results. With its full rollout now complete, Vector may be well positioned to drive revenue growth and help Unity reassert itself as a serious player in the ad tech space.
The first chart presented is a point and figure comparison chart that plots Unity Software (U) against Applovin (APP). This visual highlights the long period of outperformance by APP as it gained relative strength and captured investor attention. However, more recent data suggests a shift. The appearance of a double top in the chart and a consolidation zone indicates a battle for leadership. The Vs. SMAX score has now toggled in favor of Unity with a reading of 6 out of 10. At SIA, relative strength remains a key metric, and while our models aggregate such movements, head-to-head comparisons like this one can offer additional perspective. Capital often circulates within defined sectors, and in cases where dominant names enter periods of underperformance, that capital may rotate toward newer opportunities within the same ecosystem.
The second chart is a point and figure chart of Unity Software Inc. (U) proper and shows some additional positive technical attributes. One of the most interesting aspects is the move to positive trend as the shares pushed through the $25 to $26 level in a series of higher highs and higher bottoms, alongside an improving technical backdrop, namely the powerful sector score with SIA Computer Software (circled green above) and the perfect SMAX score of 10. Should this technical picture continue to improve, and buyers remain in control, we might look toward resistance levels at $35.67 and $49.38. We have highlighted the entire region with a red circle of resistance that will have to be overcome before shares can move materially higher.
Outside of this first range is the upper range between $80 and $130. While these are very broad levels, they serve as 60,000-foot technical hurdles that Unity might have to navigate if their strategic plans materialize. Remember, APP moved from $16 to over $500, as the ad tech space tends to be extremely profitable and associated with massive margins and huge scale, a combination that made Applovin one of the top investments of 2024.
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