Here's How Bilibili Gained 19% Last Month Thanks to the Coronavirus

What happened

Shares of Bilibili (NASDAQ: BILI) rose 19.2% in February 2020, according to data from S&P Global Market Intelligence. The Chinese short-form video service emerged as a positive play on the coronavirus outbreak.

So what

As residents of the virus hotbed Wuhan were ordered to stay home in an effort to contain the spread of the COVID-19 disease, Bilibili's video-sharing functions helped Wuhan residents report their experiences while also providing some much-needed entertainment in dark times. The company leaned into this opportunity by giving users in the locked-down region free access to some of its premium content. The stock jumped 14% higher when that move was announced.

A young asian man sits alone on a couch, smiling at his tablet computer and wearing headphones.

Image source: Getty Images.

Now what

Most Chinese stocks are struggling under the weight of the coronavirus but the disease has turned out to be a positive experience for this particular company. Bilibili and other media-streaming specialists are poised to benefit from the coronavirus pandemic as consumers who stay home could use some user-friendly entertainment. This company's twist of offering video-sharing functions and running commentary on published videos also expands Bilibili's stature as a news-sharing hub. In short, I expect Bilibili to crush analyst expectations in its fourth-quarter report on March 17, and the company can thank the virus scare for a significant part of that surprise.

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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bilibili. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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