Bilibili's Hong Kong shares fall sharply after deeper-than-expected net loss
By Ronnie Harui
Bilibili's Hong Kong-listed shares (HK:9626) fell sharply after the Chinese video-sharing platform reported a third-quarter net loss that was steeper than analysts expected.
Shares were recently 12.0% lower at 88.90 Hong Kong dollars (US$11.39) in Asian morning trade on Thursday after earlier touching HK$87.60, their lowest intraday level since November 2022, according to FactSet. The company's American Depositary Receipts (BILI) issued in the U.S. dropped 11.1% to US$11.86 on Wednesday after its third-quarter results were released.
Net loss for the July-September period stood at 1.35 billion yuan (US$189.3 million), Bilibili said after the Hong Kong market closed on Wednesday. That was higher than the median estimate for a CNY1.01 billion net loss in a FactSet poll of 16 analysts, and compared with a net loss of CNY1.71 billion a year earlier. Total net revenue rose to CNY5.81 billion in the third quarter from CNY5.79 billion a year earlier.
For 2023 as a whole, Bilibili expects total net revenue to be at the low end of the CNY22.5 billion to CNY23.5 billion range, due to lower-than-expected mobile game revenue, the company said.
"We feel Bilibili management did not prepare the company well for tough times and therefore appears to be caught off-guard by worsening macro and industry environment," Nomura analyst Jialong Shi said in a research report. The brokerage downgraded the company's ADRs to neutral from buy and lowered its target price to US$13.00 from US$18.00.
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
11-29-23 2217ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
For Bond Investors, Delayed Rate Cuts Demand a Different Playbook
-
What’s Happening In the Markets This Week
-
How the Tokyo Stock Exchange Is Pushing for Better Shareholder Returns
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Where We See Opportunities After an Ugly Month for Stocks
-
After Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?
-
When Will the Fed Start Cutting Interest Rates?
-
What’s the Difference Between the CPI and PCE Indexes?
-
Berkshire Hathaway Earnings: Strong Insurance Results Continue to Lift Revenue and Profitability
-
10 Questions for Berkshire Hathaway’s 2024 Annual Meeting
-
After Earnings, Is Ford Stock a Buy, a Sell, or Fairly Valued?
-
3 Dividend Stocks for May 2024
-
Amgen Earnings: Obesity Drug Update Is Highly Encouraging
-
What’s Going on With Apple, Tesla, and Alphabet?
-
Apple Earnings: A Weak 2024, but Optimism for 2025
-
4 Utility Stocks to Play the AI Data Center Boom