Bilibili (BILI) Surges 9.1%: Is This an Indication of Further Gains?
Bilibili BILI shares soared 9.1% in the last trading session to close at $10.05. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.3% loss over the past four weeks.
Bilibili is benefiting from an expanding user base. At the end of third-quarter 2023, average daily active users (DAUs) were 102.8 million, up 14% year over year.
This Chinese video sharing website is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of +66.7%. Revenues are expected to be $893.49 million, up 0.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Bilibili, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BILI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Bilibili belongs to the Zacks Internet - Services industry. Another stock from the same industry, Shopify SHOP, closed the last trading session 1.1% higher at $81.14. Over the past month, SHOP has returned 4.5%.
Shopify's consensus EPS estimate for the upcoming report has changed +1.2% over the past month to $0.31. Compared to the company's year-ago EPS, this represents a change of +342.9%. Shopify currently boasts a Zacks Rank of #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bilibili Inc. Sponsored ADR (BILI) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
