NEW YORK, NY / ACCESSWIRE / May 25, 2018 / Chinese companies Bilibili and Alibaba were both seeing green in Thursday trading. Shares of Bilibili soared to a new high after reporting strong first quarter results while shares of Alibaba saw a modest gain after receiving a price target increase from a Raymond James analyst.
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Bilibili Inc. shares closed up 11.33% on about 16.5 million shares traded yesterday. The stock hit a new high of $15.49 during intra-day trading after reporting first quarter financial results on Wednesday. The China-based online entertainment platform reported that sales doubled. Revenue in the first quarter was $138.4 million, which was an increase of 105% from the year ago quarter. Adjusted net loss at $501,000 was better than the net loss of $9.3 million posted a year ago. At the end of first quarter, the company had 77.5 million monthly average users, 32% higher than last year. Average monthly paying users saw a yoy growth of 190% to 2.5 million. Looking ahead the company is expecting revenue in the range of $152 million to $157 million for the second quarter. CEO Rui Chen remarked, "We are pleased to report strong operational and financial results for our first quarter as a public company, with remarkable growth across our three primary business streams. As a premier entertainment platform serving young generations in China, we continue to offer new immersive content, vibrant interaction among users and dynamic community environment." The company's CFO, Sam Fan, stated, "The 105% increase in total net revenues in the first quarter of 2018 from the same period in 2017 was driven by our robust growth of revenues from mobile games, live broadcasting and value-added services, and advertising. We are also improving our operating efficiency while continuing to grow our business. For the first quarter, we generated operating cash flow of RMB471.1 million and our net loss margin was 7%, compared to 16% for the same period in 2017."
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Alibaba Group Holding Limited shares closed up a modest 0.29% yesterday with about 18.5 million shares traded. In positive news for the company, analyst Aaron Kessler of Raymond James upped his price target on the stock from $250 to $300. The analyst believes that the company will be able to increase its take rate. Kessler wrote in a note, "We believe Alibaba has multiple take rate levers including increased personalization and targeting, increasing ad load, increased competition for ad slots, additional inventory expansion, as well as increases in commission rates on Tmall." He also noted, "Recent management commentary and robust FY19 guidance suggests confidence in continued monetization levers." Last week MKM Partners analyst Rob Sanderson also raised his price target from $260 to $280. Earlier in the month Alibaba reported fourth quarter earnings that beat expectations. Shares of Alibaba have seen gains of over 60% in the last twelve months.
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