Shares of Bilibili (BILI -0.14%) rose 19.2% in February 2020, according to data from S&P Global Market Intelligence. The Chinese short-form video service emerged as a positive play on the coronavirus outbreak.
As residents of the virus hotbed Wuhan were ordered to stay home in an effort to contain the spread of the COVID-19 disease, Bilibili's video-sharing functions helped Wuhan residents report their experiences while also providing some much-needed entertainment in dark times. The company leaned into this opportunity by giving users in the locked-down region free access to some of its premium content. The stock jumped 14% higher when that move was announced.
Most Chinese stocks are struggling under the weight of the coronavirus but the disease has turned out to be a positive experience for this particular company. Bilibili and other media-streaming specialists are poised to benefit from the coronavirus pandemic as consumers who stay home could use some user-friendly entertainment. This company's twist of offering video-sharing functions and running commentary on published videos also expands Bilibili's stature as a news-sharing hub. In short, I expect Bilibili to crush analyst expectations in its fourth-quarter report on March 17, and the company can thank the virus scare for a significant part of that surprise.