Unity Software (U) shares dropped 7.02% to close at $23.19 on February 05, 2026. The decline coincided with a sharp sell-off across the broader software sector. New releases of Anthropic’s Claude Opus 4.6 and OpenAI’s Frontier fueled the downturn. Investors expressed concern that AI agents might cannibalize traditional design tools like Unity’s game engine.
The stock fell 6% intraday during a market trend described as a SaaSpocalypse. Peer companies including HubSpot and Domo also saw share prices tumble over fears of obsolete licensing models. Unity has lost roughly 19.7% of its value over the last seven days. The share price previously stood at $28.81 on February 02.
Market movements aligned with a 1.62% drop in the Nasdaq driven by recession fears and tech rotation. Unity will report Q4 2025 earnings on February 11. Management is expected to address rising competition from AI technologies during the call. Analysts currently estimate a fair value of $38.48 for the stock, compared to the recent $24.94 close.