Bilibili Stock Rating Cut to Underperform by Bernstein Analyst

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Bilibili Inc ($NASDAQ:BILI). is a Chinese video-sharing website headquartered in Shanghai. Bilibili provides user-generated videos, live streaming, and animation-related content. The company also operates a mobile gaming platform and an online merchandise store. Many analysts have been negative about Bilibili’s prospects for some time, citing the company’s inconsistent user engagement and competition from short-video ads. On Wednesday, Robin Zhu of Bernstein cut the company’s stock rating to underperform, noting that there remains a considerable “downside risk” to the stock.

Zhu highlighted that Bilibili has been unable to generate consistent user-engagement time, and continues to face stiff competition from short-video ads. He also said that the company’s merchandise store has not been as successful as hoped, and that its mobile gaming platform has not yet gained traction. Despite these challenges, Bilibili remains one of the most popular video-sharing websites in China, with a large and loyal user base. The company has also been investing heavily in content and technology, which could pay off in the long run.

Stock Price

A Bernstein analyst has cut Bilibili’s stock rating to “underperform” due to mostly negative news surrounding the company. On Wednesday, Bilibili’s stock opened at $12.70 and closed at $12.50, down 2.4% from its previous closing price of $12.80. The analyst cites several reasons for the downgrade, including concerns about Bilibili’s slowing user growth, increasing competition from other video-streaming platforms, and the company’s recent decision to raise prices for its VIP memberships. Despite these challenges, Bilibili remains one of the most popular video-streaming platforms in China.

It is particularly popular among millennials and Gen Zers, who make up a large portion of its user base. The company has also been diversifying its business into areas such as e-commerce and live-streaming, which could help offset some of the challenges it is facing.

VI Analysis

VI app’s simple analysis on BILIBILI INC’s fundamentals reveals that the company has strong long-term potential. However, VI Risk Rating classifies it as a medium risk investment due to some financial and business risks. For example, there are 2 risk warnings in the cashflow statement and financial journal. Register on vi.app to learn more.

Summary

If you’re thinking of investing in Bilibili, you may want to reconsider. A Bernstein analyst has cut the stock rating to “underperform,” citing concerns about the company’s slowing user growth and intensifying competition. So far, the news has been mostly negative for Bilibili, and it’s likely that the stock will continue to struggle in the near future.