Why Bilibili (BILI) Shares Are Trading Lower

Zinger Key Points
  • Shares of Bilibili fell 5.5% Thursday.
  • Chinese equities faced headwinds following the release of disappointing economic data and intensifying geopolitical concerns.

Shares of Bilibili Inc – ADR BILI fell 5.5% to $17.10 Thursday as broader Chinese equities faced headwinds following the release of disappointing economic data and intensifying geopolitical concerns.

The company, a prominent Chinese video-sharing and live-streaming platform often referred to as the “YouTube of China,” is down amid growing uncertainty in China's economic outlook.

What To Know: China's December Caixin/S&P Global manufacturing purchasing managers’ index dropped to 50.5, missing analyst expectations of 51.7 and signaling slower-than-anticipated manufacturing growth. Coupled with the official PMI of 50.1, the data underscores waning domestic and export demand.

This slowdown pressures Bilibili, which relies heavily on consumer engagement and discretionary spending to drive revenue from advertising, subscriptions and virtual gifts.

Geopolitical tensions further complicate matters, as U.S. semiconductor embargoes and potential tariffs cast a shadow over China's tech sector. Bilibili, which depends on high-performance chips for its streaming and gaming services, may face rising costs and operational constraints.

Read Also: Natural Gas Prices Surge As Arctic Blast Freezes US: 3 Stocks On The Move

How To Buy BILI Stock

By now you're likely curious about how to participate in the market for Bilibili – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Bilibili, which is trading at $17.07 as of publishing time, $100 would buy you 5.86 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, BILI has a 52-week high of $31.77 and a 52-week low of $8.80.

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