Why These Two Stocks Surged: Unity and Celsius

Throughout the last six months, gaming firm Unity Software (U) traded in a range of $20 - $25. U stock broke out last week after posting quarterly earnings.On Feb. 20, Unity reported a 25.0% Y/Y drop in revenue, to $457.1 million. Non-GAAP EPS was a $0.30 loss. Create Solutions revenue fell by around half, to $152 million. This is a result of the negative lingering impact of runtime fees on gaming creators. Investors need to wait for Unity to report a rebound in this figure.Grow Solutions held up well, with revenue at $305 million, compared to $319 million last year. Unity managed to fend off the competition from AppLovin (APP) in the mobile sector.Unity posted a positive free cash flow of $286 million in the quarter. The firm is managing costs and focusing on the core gaming engine development.In the drink industry, Celsius (CELH) rallied by nearly 30%. The firm posted Q4 revenue falling by 4.3% Y/Y to $332.2 million. However, the acquisition of Alani Nu overshadowed the weak results. Investors expect the Alani will reignite Celsius’s growth. Alani has a unique customer base. For example, it has a 92% female following on social media. This suggests that the acquisition has little overlap with its core business. As a result, the combined company will have great portfolios in the energy drink category.