Bilibili Shares Have Jumped 200% in the Last 12 Months. Here’s Why

Want to know why Bilibili Inc’s (NASDAQ: BILI) share price has surged over the past year? Here’s what investors need to know. – Streaming stocks

Bilibili Inc (NASDAQ: BILI) is a Chinese entertainment company providing content in various media formats, including videos, live broadcasting, and mobile games. It focuses primarily on customers from generation Z – individuals born after 1990.

In the last 12 months, the company’s stock price has surged more than 200%. In this article, I’ll try to understand what might have been the drivers behind this rally.

Why the rising stock price?

Many reasons cause stock prices to move. Generally, stock price movement is driven either by business performance or investor sentiment.

The former is related to how a business performs in a given period, looking at metrics like growth, margins, production, and others. Here, the ultimate driver is profit.

The latter is driven more by investors’ overall mood, which is described by emotional pairs such as greed and fear, optimistic and pessimistic, or bull and bear.

In the case of Bilibili, I believe both factors contributed to its stock performance.

Solid business performance

Since its IPO in 2018, Bilibili has been delivered strong performance across its business. Let’s look at two important metrics to better illustrate that.


Source: Bilibili’s Results Presentation

The first chart shows the company’s monthly active users (MAUs) in recent quarters. In the last four quarters alone, it has added about 71 million new MAUs (up by more than 70% year-on-year).

Similarly, net revenue has been growing every quarter for the last two years, thanks to the growing MAUs and higher revenue per user.

Going forward, Bilibili expects next quarter’s revenue to be between RMB 2.5 billion (US$357.1 million) and RMB 2.55 billion, up by 63% and 67%, respectively, on a year-on-year basis.

Market sentiment

Bilibili’s strong business performance has not gone unnoticed by market participants, who clearly liked the numbers and bought its shares.

In addition, the recent Covid-19 outbreak rally among technology stocks further enhanced the already-positive sentiment, driving Bilibili’s shares to break multiple all-time highs.

Foolish takeaway

In sum, Bilibili reported solid performance since its IPO. This explains the trajectory of its share price. Still, investors should be cautious since the company remains unprofitable.

Going forward, investors will need to watch closely the company’s ability to sustain its growth, and more importantly, its moves towards profitability.

More reading

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Hong Kong contributor Lawrence Nga doesn’t own shares in any companies mentioned.

The Motley Fool Hong Kong Limited( 2020

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!