Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Bilibili Stock Jumped on Monday

By Daniel Sparks - Jan 4, 2021 at 2:31PM

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

The stock's gain on Monday extends a bullish run for the online entertainment company's stock in recent months.

What happened

Shares of China-based online entertainment provider Bilibili ( BILI 3.75% ) jumped sharply on Monday. The stock rose as much as 12.2% at one point during the trading day. As of 2 p.m. EST, the stock was up about 9%.

The stock's gain is likely due at least in part to its momentum toward the end of 2020, some of which has been triggered by strong operational results and a recent trade deal between China and the European Union.

A chart showing a stock price moving higher.

Image source: Getty Images.

So what

Shares of Bilibili have been on a tear since November when the company announced a 74% year-over-year increase in third-quarter revenue. This strong performance was driven by a 42% year-over-year jump in average daily active users and an 89% increase in average monthly paying users. 

The stock's momentum continued into the end of the year and has been extended into the beginning of 2021, following more recent news that the European Union and China finalized a deal to improve international trade and cross-border investment between the two markets.

The stock's big gain on Monday extends Bilibili's recent momentum.

Now what

Management believes these are still early days for Bilibili.

"As we leverage our core capabilities in providing engaging content and community experience, we are committed to further improving our brand equity and capturing this market opportunity," explained Bilibili CEO Rui Chen in the company's Nov. 18 third-quarter earnings release. "We believe the investments we are making now to increase our stronghold in China's entertainment market will yield considerable and sustainable return in the long run."

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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
$57.00 (3.75%) $2.06

*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 service.

Stock Advisor Returns
624%
 
S&P 500 Returns
140%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/07/2021.

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

Our Most Popular Articles

Premium Investing Services

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