Bilibili: Rising With Video Content, Initiate With Buy Rating

Summary

• Initiate Bilibili with a buy rating and $28 fair value, driven by its unique, highly engaged young user base and strong retention rates.
• Bilibili's growth is fueled by AI-powered content creation tools, robust user engagement, and expanding high-margin advertising and gaming businesses.
• Recent financials show impressive margin improvement and a shift to profitability, with ongoing operating leverage expected from prior investments.
• Key BILI risks include competition from Douyin, regulatory challenges in gaming, potential share dilution, and U.S.-China geopolitical tensions, but cash reserves provide a buffer.

MoMo Productions

Bilibili Inc. (NASDAQ:BILI) is a leading video social platform for the young generation in China. On the platform, users and content creators can interact with each other, and Bilibili provides excellent technology to help creators generate video content

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.