J.P. Morgan Upgrades Bilibili to Overweight Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 17 2026
0mins
Should l Buy BILI?
Source: seekingalpha
- Ad Revenue Growth Outlook: J.P. Morgan anticipates that Bilibili will achieve over 25% ad revenue growth in upcoming quarters, driven by traffic increases, higher cost-per-mile ads, and a further rise in ad load, thereby enhancing the company's competitive position in the market.
- AI Investment Strategy: The firm believes that Bilibili's strategy to invest in artificial intelligence is sound, expecting it to become a major driver of user engagement and advertising revenue, akin to the successes seen with platforms like Meta and TikTok.
- Profitability Enhancement: Despite AI investments, J.P. Morgan highlights that Bilibili's strong operating leverage will enable solid profit growth in 2026, with a modest increase in operating expenses coupled with sustained ad revenue growth ensuring the company's profitability.
- Game Revenue Recovery: The firm noted that the upcoming releases of the theme card game Ncard and the monster-catching game Lumi Master are expected to drive game revenue back to positive year-over-year growth, further strengthening the company's overall financial performance.
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Analyst Views on BILI
Wall Street analysts forecast BILI stock price to rise
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 22.330
Low
27.00
Averages
30.25
High
34.00
Current: 22.330
Low
27.00
Averages
30.25
High
34.00
About BILI
Bilibili Inc is an investment holding company primarily engaged in providing online entertainment services. Content business categories include anime content, pan entertainment and pan knowledge content. Community business provides a community interaction platform. Value-added services mainly include live streaming and paid membership services. Advertising business is mainly engaged in advertising business, covering household appliances, e-commerce, Internet services, automobiles and other industries. Mobile gaming business mainly engages in mobile game development, including San Guo: Mou Ding Tian Xia, Fate Grand Order, Azure Lane, and others. The Company also engages in commercial services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
J.P. Morgan Upgrades Bilibili to Overweight Rating
- Ad Revenue Growth Outlook: J.P. Morgan anticipates that Bilibili will achieve over 25% ad revenue growth in upcoming quarters, driven by traffic increases, higher cost-per-mile ads, and a further rise in ad load, thereby enhancing the company's competitive position in the market.
- AI Investment Strategy: The firm believes that Bilibili's strategy to invest in artificial intelligence is sound, expecting it to become a major driver of user engagement and advertising revenue, akin to the successes seen with platforms like Meta and TikTok.
- Profitability Enhancement: Despite AI investments, J.P. Morgan highlights that Bilibili's strong operating leverage will enable solid profit growth in 2026, with a modest increase in operating expenses coupled with sustained ad revenue growth ensuring the company's profitability.
- Game Revenue Recovery: The firm noted that the upcoming releases of the theme card game Ncard and the monster-catching game Lumi Master are expected to drive game revenue back to positive year-over-year growth, further strengthening the company's overall financial performance.
See More
Geopolitical Tensions Lead to US Stock Declines
- Geopolitical Impact: The escalation of the US-Israeli conflict, with Iran launching missiles and striking an oil refinery in Bahrain, has driven crude oil prices above $80 per barrel, intensifying fears of a global economic slowdown and resurging inflation, which directly affects investor confidence.
- Stock Market Declines: This week, the S&P 500 and Nasdaq fell by 1.5% and 0.7%, respectively, while the Dow dropped 2.4%, indicating a broad reassessment of economic outlook amid surging energy prices that have shaken market stability.
- European Market Struggles: European equities fell 3.8% due to rising energy prices linked to the Middle East conflict, with London's FTSE 100 tumbling 5.7%, and Germany and France's markets slipping 4.5% and 5%, respectively, reflecting significant regional economic uncertainty.
- Asia-Pacific Market Volatility: The Asia-Pacific markets faced sharp losses as tensions in the Middle East continued to escalate, with China's manufacturing activity declining slightly in February, and South Korea's KOSPI index experiencing a historic drop of over 12% during intraday trading, highlighting the market's sensitivity to geopolitical risks.
See More
US Department of War Denies Negotiations with Anthropic AI
- Government Denial: The US Department of War has refuted any ongoing negotiations with AI startup Anthropic, which plans to challenge the government's designation of it as a national security 'supply chain risk,' potentially impacting its funding and market confidence.
- Congressional Scrutiny on China: Congressman John Moolenar urged the Treasury Secretary to exercise 'heightened scrutiny' of inbound investments from China, which could lead to stricter restrictions on Chinese businesses seeking market access in critical manufacturing sectors in the US, affecting US-China economic relations.
- Trump Administration's New Framework: The Trump administration is reportedly considering a new framework that would require foreign governments to invest in US data centers when exporting advanced AI chips, which could alter the dynamics of the global technology supply chain and impact international competition.
- Amazon Job Cuts: Amazon has reportedly cut additional jobs in its robotics division, reflecting structural adjustments as the company faces market challenges, which may affect its future innovation capabilities and competitive position.
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Bilibili Reports Strong 2025 Earnings with GAAP Profitability
- Significant Revenue Growth: Bilibili achieved total revenue of RMB 30.3 billion in 2025, marking a 13% year-over-year increase, particularly driven by a 27% rise in advertising revenue in Q4, indicating strong demand from AI advertisers.
- Enhanced User Engagement: Daily active users grew by 10% in Q4, with average daily time spent increasing by 8% to 107 minutes, demonstrating the successful integration of AI to enhance content discovery and ad targeting, thereby improving user retention and monetization capabilities.
- Profitability Milestone: The company reported a GAAP net profit of RMB 514 million in 2025, achieving a significant financial milestone, with adjusted net profit reaching RMB 878 million and a net margin of 10.6%, reflecting effective strategies in cost control and revenue growth.
- Challenges in Gaming Revenue: Despite overall revenue growth, game revenue declined by 14% year-over-year in Q4, contributing only 18% to total revenues, highlighting intensified competition in the mobile gaming sector, necessitating ongoing innovation to maintain user base and creator community.
See More
Bilibili Reports Strong Q4 2025 Earnings Beat Amid Mixed Performance
- Revenue Growth: Bilibili's Q4 2025 revenue rose 8% year-over-year to $1.19 billion (8.32 billion yuan), exceeding analyst expectations of $1.16 billion, demonstrating resilience in core revenue streams despite a challenging market environment.
- User Engagement Boost: Average daily active users increased by 10% year-over-year to 113 million, with average daily time spent per user rising 8% to 107 minutes, indicating sustained user engagement and stickiness that could drive future revenue growth.
- Improved Profitability: Adjusted net income reached $125.6 million (878.4 million yuan), significantly up from the previous year, with gross margin expanding from 36.1% to 37.0%, reflecting effective strategies in cost control and profitability enhancement.
- Market Pressure: Despite strong earnings, Bilibili's stock fell 7% to $26.03, influenced by China's lowered GDP growth target for 2026 to 4.5%-5%, highlighting investor concerns over the macroeconomic environment.
See More
Bilibili Reports Q4 Profit and Revenue Beat Driven by Advertising Growth
- Advertising Revenue Surge: Bilibili's Q4 advertising revenue increased by 27% year-over-year, reflecting strong market performance driven by improved advertising products and efficiency, indicating enhanced competitiveness in the advertising sector.
- User Engagement Growth: Average daily active users reached 113 million, up 10% year-over-year, with users spending an average of 107 minutes daily on the platform, enhancing user stickiness and overall platform appeal.
- Effective Cost Control: Total operating expenses decreased by 3% year-over-year to RMB 2.58 billion, primarily due to cutbacks in sales and marketing costs, further improving the company's operating leverage.
- Significant Profitability Improvement: The net profit for Q4 was RMB 513.4 million, or RMB 1.14 per share, a substantial increase from RMB 90 million last year, exceeding Wall Street analyst expectations, showcasing a notable enhancement in the company's profitability.
See More
J.P. Morgan Upgrades Bilibili to Overweight Rating
- Ad Revenue Growth Outlook: J.P. Morgan anticipates that Bilibili will achieve over 25% ad revenue growth in upcoming quarters, driven by traffic increases, higher cost-per-mile ads, and a further rise in ad load, thereby enhancing the company's competitive position in the market.
- AI Investment Strategy: The firm believes that Bilibili's strategy to invest in artificial intelligence is sound, expecting it to become a major driver of user engagement and advertising revenue, akin to the successes seen with platforms like Meta and TikTok.
- Profitability Enhancement: Despite AI investments, J.P. Morgan highlights that Bilibili's strong operating leverage will enable solid profit growth in 2026, with a modest increase in operating expenses coupled with sustained ad revenue growth ensuring the company's profitability.
- Game Revenue Recovery: The firm noted that the upcoming releases of the theme card game Ncard and the monster-catching game Lumi Master are expected to drive game revenue back to positive year-over-year growth, further strengthening the company's overall financial performance.
See More
Geopolitical Tensions Lead to US Stock Declines
- Geopolitical Impact: The escalation of the US-Israeli conflict, with Iran launching missiles and striking an oil refinery in Bahrain, has driven crude oil prices above $80 per barrel, intensifying fears of a global economic slowdown and resurging inflation, which directly affects investor confidence.
- Stock Market Declines: This week, the S&P 500 and Nasdaq fell by 1.5% and 0.7%, respectively, while the Dow dropped 2.4%, indicating a broad reassessment of economic outlook amid surging energy prices that have shaken market stability.
- European Market Struggles: European equities fell 3.8% due to rising energy prices linked to the Middle East conflict, with London's FTSE 100 tumbling 5.7%, and Germany and France's markets slipping 4.5% and 5%, respectively, reflecting significant regional economic uncertainty.
- Asia-Pacific Market Volatility: The Asia-Pacific markets faced sharp losses as tensions in the Middle East continued to escalate, with China's manufacturing activity declining slightly in February, and South Korea's KOSPI index experiencing a historic drop of over 12% during intraday trading, highlighting the market's sensitivity to geopolitical risks.
See More
US Department of War Denies Negotiations with Anthropic AI
- Government Denial: The US Department of War has refuted any ongoing negotiations with AI startup Anthropic, which plans to challenge the government's designation of it as a national security 'supply chain risk,' potentially impacting its funding and market confidence.
- Congressional Scrutiny on China: Congressman John Moolenar urged the Treasury Secretary to exercise 'heightened scrutiny' of inbound investments from China, which could lead to stricter restrictions on Chinese businesses seeking market access in critical manufacturing sectors in the US, affecting US-China economic relations.
- Trump Administration's New Framework: The Trump administration is reportedly considering a new framework that would require foreign governments to invest in US data centers when exporting advanced AI chips, which could alter the dynamics of the global technology supply chain and impact international competition.
- Amazon Job Cuts: Amazon has reportedly cut additional jobs in its robotics division, reflecting structural adjustments as the company faces market challenges, which may affect its future innovation capabilities and competitive position.
See More
Bilibili Reports Strong 2025 Earnings with GAAP Profitability
- Significant Revenue Growth: Bilibili achieved total revenue of RMB 30.3 billion in 2025, marking a 13% year-over-year increase, particularly driven by a 27% rise in advertising revenue in Q4, indicating strong demand from AI advertisers.
- Enhanced User Engagement: Daily active users grew by 10% in Q4, with average daily time spent increasing by 8% to 107 minutes, demonstrating the successful integration of AI to enhance content discovery and ad targeting, thereby improving user retention and monetization capabilities.
- Profitability Milestone: The company reported a GAAP net profit of RMB 514 million in 2025, achieving a significant financial milestone, with adjusted net profit reaching RMB 878 million and a net margin of 10.6%, reflecting effective strategies in cost control and revenue growth.
- Challenges in Gaming Revenue: Despite overall revenue growth, game revenue declined by 14% year-over-year in Q4, contributing only 18% to total revenues, highlighting intensified competition in the mobile gaming sector, necessitating ongoing innovation to maintain user base and creator community.
See More
Bilibili Reports Strong Q4 2025 Earnings Beat Amid Mixed Performance
- Revenue Growth: Bilibili's Q4 2025 revenue rose 8% year-over-year to $1.19 billion (8.32 billion yuan), exceeding analyst expectations of $1.16 billion, demonstrating resilience in core revenue streams despite a challenging market environment.
- User Engagement Boost: Average daily active users increased by 10% year-over-year to 113 million, with average daily time spent per user rising 8% to 107 minutes, indicating sustained user engagement and stickiness that could drive future revenue growth.
- Improved Profitability: Adjusted net income reached $125.6 million (878.4 million yuan), significantly up from the previous year, with gross margin expanding from 36.1% to 37.0%, reflecting effective strategies in cost control and profitability enhancement.
- Market Pressure: Despite strong earnings, Bilibili's stock fell 7% to $26.03, influenced by China's lowered GDP growth target for 2026 to 4.5%-5%, highlighting investor concerns over the macroeconomic environment.
See More
Bilibili Reports Q4 Profit and Revenue Beat Driven by Advertising Growth
- Advertising Revenue Surge: Bilibili's Q4 advertising revenue increased by 27% year-over-year, reflecting strong market performance driven by improved advertising products and efficiency, indicating enhanced competitiveness in the advertising sector.
- User Engagement Growth: Average daily active users reached 113 million, up 10% year-over-year, with users spending an average of 107 minutes daily on the platform, enhancing user stickiness and overall platform appeal.
- Effective Cost Control: Total operating expenses decreased by 3% year-over-year to RMB 2.58 billion, primarily due to cutbacks in sales and marketing costs, further improving the company's operating leverage.
- Significant Profitability Improvement: The net profit for Q4 was RMB 513.4 million, or RMB 1.14 per share, a substantial increase from RMB 90 million last year, exceeding Wall Street analyst expectations, showcasing a notable enhancement in the company's profitability.
See More
