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On Wednesday, Benchmark analysts maintained their Buy rating and $30.00 price target for Bilibili (NASDAQ:BILI), following the company’s impressive first-quarter financial performance in 2025. According to InvestingPro data, the company, currently valued at $7.75 billion, is trading below its Fair Value, with analyst targets ranging from $18.04 to $36.08. Bilibili’s recent success was attributed to significant year-over-year growth in its gaming division and advancements in advertising technology.
The company reported a robust 76% year-over-year increase in gaming revenue for the first quarter of 2025, a surge driven largely by the ongoing success of the game San Mou™, which has evolved into a long-cycle franchise. Additionally, Bilibili’s advertising technology, powered by Artificial Intelligence Generated Content (AIGC), contributed to a 30% year-over-year growth in performance ads. This growth aligns with the company’s overall revenue increase of 21.83% in the last twelve months, as reported by InvestingPro. This growth underscores the enhanced efficiency and monetization of the company’s advertising platform.
Looking forward, Bilibili is poised for continued momentum in its gaming sector, with the highly anticipated Season 8 update of San Mou™ and its international expansion set for the second quarter and the second half of the year, respectively. InvestingPro analysis reveals several positive indicators, including expected net income growth and projected profitability this year. These are just two of many insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of Bilibili’s financial health, currently rated as GOOD. Analysts also project that Bilibili’s AI-driven infrastructure and an expanding user base will further increase inventory and conversion rates for ads.
Despite the broader macroeconomic challenges, Benchmark analysts are confident in Bilibili’s revenue outlook for the fiscal year 2025. They expect that the company’s high-margin gaming and advertising segments will increasingly contribute to the revenue mix, leading to sustained margin expansion. This outlook is supported by stable content costs and disciplined marketing strategies, with the company maintaining a healthy gross profit margin of 34.46% and holding more cash than debt on its balance sheet.
The loyalty of Bilibili’s gaming community and its unique advertising technology are seen as key structural advantages that position the company for continued growth and improved profitability. With these factors in mind, Benchmark has reiterated its Buy rating and price target of $30 for Bilibili stock.
In other recent news, Bilibili has caught the attention of several analysts following its latest financial performance and strategic initiatives. HSBC upgraded Bilibili’s stock rating to Buy with a new price target of $22.50, citing the company’s strong performance in its high-margin game and advertisement sectors. The analyst expressed confidence in Bilibili’s revenue growth, driven by quality user growth and value-added services, with expectations for continued margin improvements. In a similar vein, Mizuho (NYSE:MFG) Securities maintained an Outperform rating and raised the price target to $26, highlighting Bilibili’s consistent annual margin expansion and projecting further improvements in 2025. Benchmark also increased its price target for Bilibili to $30, maintaining a Buy rating, following better-than-expected fourth-quarter earnings fueled by the flagship game San Mou and advertising revenue growth.
These developments come amid escalating trade tensions between the U.S. and China, which have affected the broader market for Chinese stocks. Despite these challenges, Bilibili’s management remains optimistic about the company’s long-term growth, with plans for significant updates to its gaming offerings and a focus on enhancing its advertising ecosystem through AI. Analysts from Benchmark and Mizuho emphasize the company’s strong ecosystem, premium content supply, and engaged user base as key drivers for its revenue and margin growth. As Bilibili continues to explore new opportunities for monetization and user engagement, the company’s strategic initiatives indicate a commitment to sustained growth and expansion in its gaming and advertising sectors.
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