Bilibili, facing multiple risks, gets cut to underperform at Bernstein

Chinese online gaming platform developer Bilibili received some more negative sentiment from Wall Street on Wednesday as Bernstein analyst Robin Zhu cut the company’s stock rating to underperform.

Zhu made the move after saying that many analysts have been negative about Bilibili’s prospects for some time, and that there remains a considerable “downside risk” to the stock. Zhu said that Bilibili has been inconsistent with generating consisting user-engagement time, and continues to face competition from short-video ads.

Bilibili is also facing a decline in its net cash holdings that, by the first half of 2023, could send the company in to a net debt position.

Bilibili’s shares held near their breakeven line in pre-market trading, Wednesday, but are coming off a loss of more than 7% on Tuesday as many Chinese tech and Internet companies slumped on more negative reaction to new U.S. regulations about the exporting of semiconductor technologies to China.

Author: Rex Crum, Seeking Alpha

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