Please ensure Javascript is enabled for purposes of website accessibility

Here's How Bilibili Gained 19% Last Month Thanks to the Coronavirus

By Anders Bylund - Mar 7, 2020 at 6:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This Chinese video-sharing service made the most out of the coronavirus lockdown in Wuhan.

What happened

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.

So what

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.

A young asian man sits alone on a couch, smiling at his tablet computer and wearing headphones.

Image source: Getty Images.

Now what

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Bilibili Stock Quote
Bilibili
BILI
$27.81 (-0.14%) $0.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.