One of the Netflix of China’s biggest competitors soars 7% after earnings show it’s dominating a key demographic (BILI)

pulse

August 29, 2018 8:21 PM

Shares of Bilibili, one of the biggest competitors of the Netflix of China iQiyi, jumped more than 7% in Wednesday trading. The company's strong earnings showed it was popular among a key demographic in the country.

The rising trend followed a
Bilibili's second-quarter earnings beat on the top and bottom lines, and showed it's winning with China's Generation Z.

Shares of Bilibili, one of the biggest competitors of iQiyi, the Netflix of China, jumped more than 7% in Wednesday trading.

The price jump follows a second-quarter earnings also accelerated the rising trend.

Bilibili on Monday $155.1 million in quarterly , easily beating

"Dynamic, interactive content drove our strong second quarter performance, with continued growth momentum across our business," said Bilibili CEO Rui Chen in the earnings release.

"Our platform is actively attracting a growing number of users and we continue to see high levels of engagement and user retention rates, thanks to our flourishing community. As we move through the second half of the year, we remain committed to further expanding our user base, curating and acquiring premium content, optimizing our monetization strategy, and reinforcing our leading position as the premier platform for China's coveted Generation Z online entertainment community."

The company's focus on China's Generation Z community was highlighted by a team of analysts from Morgan Stanley led by Alex Poon.

"We like the company's multi-monetization channels (games, advertising, v and live streaming), and niche market focus on the sticky Generation Z community with strong user generated content growth momentum, which should drive traffic, advertising business and margins in the long-run," the team said in an August 22 note to clients.

The team cut its price target to $13.50 from $15 and had an "Overweight" rating on the company before earnings. Bilibili hit its price target in Wednesday trading.

Shares of Bilibili are up 24% since their

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