BILI Shares Rise 59% Year to Date: Should Investors Buy the Stock?

Core Insights - Bilibili (BILI) shares have surged 59.2% year to date, outperforming the Zacks Computer & Technology sector and the Zacks Internet - Services industry [1] - The strong performance is attributed to robust mobile game revenues, creator monetization, and high user engagement metrics [2] Financial Performance - The Zacks Consensus Estimate for fourth-quarter revenues is $1.07 billion, indicating a year-over-year growth of 21.35% [3] - The consensus estimate for earnings is 19 cents per share, unchanged over the past 30 days [3] - For 2024, the revenue estimate is $3.71 billion, reflecting a year-over-year growth of 16.89%, with earnings pegged at 5 cents per share [3] Earnings Surprises - BILI shares have beaten the Zacks Consensus Estimate in two of the last four quarters, with an average negative surprise of 4.25% [4] Growth Drivers - Mobile game revenues increased by 83.8% year over year in Q3 2024, driven by a strong game portfolio [6] - Notable titles include San Guo: Mou Ding Tian Xia, which quickly grossed RMB 1 billion ($138 million) [6] - New game launches and updates are expected to expand the player base and drive revenue growth [7] User Engagement - The average daily time spent per user reached 106 minutes, with daily video views exceeding 5.7 billion, up 23% year over year [8] - The monetization of the creator ecosystem through initiatives like fan charging is enhancing income growth for creators [8] Investment Outlook - BILI is positioned for solid growth prospects due to strong mobile gaming revenues, user engagement, and creator monetization [9] - The company currently holds a Zacks Rank 2 (Buy) and a Growth Score of B, indicating a favorable investment opportunity [9]