What happened
Shares of Bilibili (BILI 5.44%) rose as much as 10.8% higher on Wednesday. At 3:30 p.m. EST, the Chinese provider of online video platforms and services had settled down at a slightly milder 10.3% gain.
Check out the latest Bilibili earnings call transcript.
So what
This was one of those stock market moves that just pop out of thin air. Bilibili had no big news to share today. Analysts didn't issue any bullish (or bearish) reports on the stock. Yes, Chinese internet stocks rose, in general, as another round of trade talks between Beijing and Washington wrapped up with hopes of a resolution shimmering on the horizon.
But most of Bilibili's peers stopped at lower gains, typically below 6%. The video-service maven rose above the rest for no clear reason.
Image source: Getty Images.
Now what
Bilibili is a bit more prone to wild swings in its share price than most of its closest competitors because it's a young stock that entered the market as recently as March of 2018. Investors and analysts alike are trying to get a handle on this unfamiliar company and stock.
Don't cry for Bilibili's investors, though. The stock still is trading 38% above the IPO price. Drastic volatility is just an ordinary and rather natural aspect of owning freshly minted stocks whose operations are run almost entirely in the Far East.
