Insights

Why Bilibili Stock Was Falling This Week

What happened
Shares of Bilibili (NASDAQ: BILI) were down 11.7% week to date through Thursday’s close, according to data provided by S&P Global Market Intelligence.
The online video platform was one of more than 80 companies that was added this week to the Securities and Exchange Commission’s (SEC) list of companies that could be delisted from U.S. stock exchanges if they do not comply with U.S. auditing standards over a period of three consecutive years. 
So what
The threat of expulsion from U.S. exchanges has pressured several top Chinese stocks over the last year. The SEC’s move to name Bilibili as a commission-identified issuer under the Holding Foreign Companies Accountable Act came after the company filed its annual report. 
In a press release, Bilibili said it would “continue to comply with applicable laws and regulations in both China and the United States, and strive to maintain its listing status on both Nasdaq and the Hong Kong Stock Exchange.” 
Image source: Getty Images.

Now what
Bilibili’s business is not growing as fast as it was a year ago, but it’s still posting strong growth in key operating metrics. For the fourth quarter, revenue grew 51% year over year, driven by a 37% increase in average monthly paying users. Users spent a daily average of 82 minutes on the platform. There was balanced growth across value-added services (premium memberships), advertising, and e-commerce revenue. 
Despite strong growth, the stock is currently down 85% from its all-time high reached in early 2021. The company has been listed on the Nasdaq Stock Market since March 2018. If Bilibili can remain compliant with U.S. listing rules, there would obviously be enormous upside in the stock. But investors must take into consideration the risks, with China’s regulatory standards for online gaming and social media platforms, in addition to heightened scrutiny by U.S. regulators.
John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Bilibili. The Motley Fool has a disclosure policy. –

What happened

Shares of Bilibili (NASDAQ: BILI) were down 11.7% week to date through Thursday’s close, according to data provided by S&P Global Market Intelligence.

The online video platform was one of more than 80 companies that was added this week to the Securities and Exchange Commission’s (SEC) list of companies that could be delisted from U.S. stock exchanges if they do not comply with U.S. auditing standards over a period of three consecutive years. 

So what

The threat of expulsion from U.S. exchanges has pressured several top Chinese stocks over the last year. The SEC’s move to name Bilibili as a commission-identified issuer under the Holding Foreign Companies Accountable Act came after the company filed its annual report. 

In a press release, Bilibili said it would “continue to comply with applicable laws and regulations in both China and the United States, and strive to maintain its listing status on both Nasdaq and the Hong Kong Stock Exchange.” 

Image source: Getty Images.

Now what

Bilibili’s business is not growing as fast as it was a year ago, but it’s still posting strong growth in key operating metrics. For the fourth quarter, revenue grew 51% year over year, driven by a 37% increase in average monthly paying users. Users spent a daily average of 82 minutes on the platform. There was balanced growth across value-added services (premium memberships), advertising, and e-commerce revenue. 

Despite strong growth, the stock is currently down 85% from its all-time high reached in early 2021. The company has been listed on the Nasdaq Stock Market since March 2018. If Bilibili can remain compliant with U.S. listing rules, there would obviously be enormous upside in the stock. But investors must take into consideration the risks, with China’s regulatory standards for online gaming and social media platforms, in addition to heightened scrutiny by U.S. regulators.

John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Bilibili. The Motley Fool has a disclosure policy.

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.

  • This field is for validation purposes and should be left unchanged.

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 - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!