Bilibili: Stock's Risk/Reward Is Completely Different From Last Year

Michael Ngan185 FollowersFollow5ShareSavePlay(9min)CommentsSummaryBilibili delivered Q4 2025 earnings in line with expectations, with standout 27% YoY growth in advertising revenue.User base growth remains limited; current margin driver remains advertising, with ad efficiency still lagging peers.Gaming revenue shows no meaningful growth prospects post-San Mou release, presenting ongoing challenges for this segment. Segment revenue declined by 14.3% in Q4.Gaming is by far the biggest driver of margins. Until there is meaningful progress, I am continuing with my "hold" rating. helloabc/iStock Editorial via Getty Images Thesis Bilibili's (BILI) release of earnings for Q3 and Q4 reflects some stagnation of the business, particularly for gaming and VAS. Progress on gaming was a major catalyst that fueled the stock's outperformanceThis article was written byMichael Ngan185 FollowersFollowI specialize in fundamental research in the H and A share markets.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.