Unity Software Is 1 Stock to Avoid in a Bear Market

Investors are hesitant to invest in Unity's stock for several reasons. Although Unity recently announced its first profitable quarter in its Q4 earnings release, don't be confused; it reported non-GAAP profitability, which doesn't follow generally accepted accounting principles (GAAP) standards. According to the chart below, the company has lacked GAAP profitability since coming public in the third quarter of 2020, a significant disadvantage in this current poor economic climate.