Unity bosses sold stock days before development fees announcement::Unity executives sold thousands of shares in the weeks leading up to last night’s hugely controversial announcement it …

  • @Szymon@lemmy.ca
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    5010 months ago

    The stock is down 5.5% today. It’s down 6% from a week ago.

    The stock is up 0.5% from a month ago, and up a whopping 32% from 6 months ago.

    It’s down 50% from five years ago.

    What I’m getting at is that this announcement has very little movement on the stock price overall. Unless these bosses were clearing out their inventory thinking this news would kill the company, its possible these sales were normal transactions.

    • gila
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      3610 months ago

      The financial impact of this decision is entirely speculative at this stage. Unity’s next quarterly earnings report won’t be impacted by it. The market is attempting to price in losses that haven’t yet occurred. We won’t know how it affects stock price for awhile

      • @jonne@infosec.pub
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        1210 months ago

        Yeah, an announcement like this is the shit wall street lives for. Short term gain but a long term harm is what they’re all about. That’s why they love layoffs as well. Doesn’t matter that it screws with company morale, short term the company makes more profit!

      • @Szymon@lemmy.ca
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        510 months ago

        The small nosedive the stock price took agrees with your assessment. It’ll get an emotional reaction from some, but decisions like this are made in the interest of the shareholder, not the consumer - this is a calculated move to generate profit. They decided that the losses of people abandoning the product will be outweighed by the profits of this new revenue steam.

    • no surprises
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      2310 months ago

      What I’m getting at is that this announcement has very little movement on the stock price overall.

      Hindsight bias. They didn’t know that before the announcement.

    • @livingcoder@programming.dev
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      110 months ago

      “Normal transaction” after a fundamental change in how all games that use your product are financially responsible by novel, unmeasurable, and unrealistic metrics. No transaction prior to this kind of announcement is “normal” imo.

    • Andy
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      -210 months ago

      Why would executives sell shares of their own company in any case?

      I could imagine selling a handful of shares to finance a big purchase like a house, but otherwise they shouldn’t ever be cashing out while they’re in charge. If they think they’re serving the company, they should be holding onto their shares.

      • @Szymon@lemmy.ca
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        510 months ago

        The flaw is the notion that they serve the company. This is a parasitic class which serves itself above all else.

      • 小莱卡
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        10 months ago

        Stock buybacks, where a company buys its own stock to inflate stock prices and reward shareholders, are reeaally common practices. Obviously, shareholders have to sell stocks to cash out.