What happened

Shares of Bilibili (NASDAQ:BILI) gained 15.6% in November, according to data provided by S&P Global Market Intelligence. The Chinese gaming and social media company's stock saw positive movement thanks to a new partnership, better-than-expected third-quarter results, and favorable ratings coverage.

BILI Chart

BILI data by YCharts.

Bilibili detailed a new partnership with video game publisher GREE on Oct. 31, outlining plans to develop new games, expand in the Japanese market, and explore other opportunities in the social media space. The company followed up news of this deal with solid quarterly results on Nov. 21, and evidence of ongoing growth at the business prompted a Morgan Stanley analyst to raise his price target on the stock. 

Hands holding a mobile phone.

Image source: Getty Images.

So what

Bilibili published a press release late in October detailing its partnership with GREE and their plans to launch new mobile games for the Chinese and Japanese markets and develop virtual stars for Alphabet's YouTube platform. The quote below from Bilibili CEO Rui Chen summarizes the potential value in the team-up:

We believe that as the leading content producer and game developer in Japan, GREE's avant-garde content and innovative game production competencies will be welcomed by Bilibili's highly engaged community. Enthusiastic game lovers in China can now delight in our shared content, as well as a host of new constituents in Japan. Our partnership is a further testament to our commitment to delivering diversified and superior entertainment experiences to a vibrant and actively growing user base, while continuing to grow our business.

Bilibili then reported third-quarter results on Nov. 21, with sales for period climbing 48% year over year to reach roughly $157 million and beating the average analyst estimate by roughly $9.2 million. Operating losses for the period rose substantially to $29.5 million, but this was expected because the company is investing heavily in content in order to bolster the appeal of its platforms, hiring new personnel, and increasing its marketing spend. Following the earnings release, Morgan Stanley analyst Alex Poon published a note that maintained an "equal weight" rating on the stock but increased its price target from $11 to $14.

Now what

Bilibili shares have given up some of November's gains, trading down roughly 5.8% in December so far.

BILI Chart

BILI data by YCharts.

Management expects sales for the current quarter to come in between 1.04 billion Chinese renminbi and 1.08 billion renminbi, with the midpoint of that target equaling roughly $150 million based on current exchange rates.