Bilibili Misses Q2 EPS Estimates by $0.10

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Bilibili($NASDAQ:BILI) reported their second quarter earnings and missed estimates by $0.10. Revenue was $732.9 million, which beat expectations by $29.08 million. The company attributed the miss to higher costs associated with user acquisition and content costs. It is unclear how this miss will affect Bilibili in the long term. The company is still growing rapidly and has a strong user base. However, if they continue to miss earnings estimates, it could eventually start to hurt their stock price and reputation.

Market Price

On Thursday, Bilibili stock opened at $20.5 and closed at $20.1, plunge by 15.0% from prior closing price of 23.6. This news came as a surprise to investors, who had high hopes for the company. Bilibili has been one of the hottest stocks on the market, but this miss may cause some investors to reconsider their position.

VI Analysis

The company’s fundamentals reflect its long-term potential. Below, the analysis of BILIBILI is made simple by the VI app. According to the VI Risk Rating, BILIBILI is a medium-risk investment in terms of financial and business aspects. However, you may check out what are the business and financial areas presenting potential risks in our website.

Summary

Bilibili missed Q2 earnings estimates by $0.10 per share, and the stock price moved down the same day. While the company’s overall revenue and user growth continue to be strong, investors may be concerned about Bilibili’s profitability. In the past, Bilibili has relied heavily on advertising and other forms of marketing to drive user growth, which has led to high costs. If Bilibili can’t improve its profitability, it may have to slow down its user growth in order to control costs.