Bilibili's (BILI, Financial) stock rose by 3.42%, reaching $21.8. Analysts at Daiwa have indicated that Bilibili's third-quarter performance may be a critical catalyst for its stock price, as the company is expected to achieve a break-even point during this period.
With increased visibility into Bilibili's profitability trajectory, the company’s advertising and gaming segments are likely to serve as major contributors to future earnings growth. Daiwa holds an optimistic outlook on Bilibili’s profit margin expansion, forecasting a quarter-over-quarter gross margin increase of 4.6 percentage points to 34.5% for the third quarter. Additionally, earnings per share estimates for fiscal years 2024 to 2026 have been raised by 1% to 3%.
