Why Bilibili Stock Climbed 15.6% in November

What happened

Shares of Bilibili (NASDAQ: BILI) gained 15.6% in November, according to data provided by S&P Global Market Intelligence. The Chinese gaming and social media company's stock saw positive movement thanks to a new partnership, better-than-expected third-quarter results, and favorable ratings coverage.

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Bilibili detailed a new partnership with video game publisher GREE on Oct. 31, outlining plans to develop new games, expand in the Japanese market, and explore other opportunities in the social media space. The company followed up news of this deal with solid quarterly results on Nov. 21, and evidence of ongoing growth at the business prompted a Morgan Stanley analyst to raise his price target on the stock.

So what

Bilibili published a press release late in October detailing its partnership with GREE and their plans to launch new mobile games for the Chinese and Japanese markets and develop virtual stars for Alphabet's YouTube platform. The quote below from Bilibili CEO Rui Chen summarizes the potential value in the team-up:

Bilibili then reported third-quarter results on Nov. 21, with sales for period climbing 48% year over year to reach roughly $157 million and beating the average analyst estimate by roughly $9.2 million. Operating losses for the period rose substantially to $29.5 million, but this was expected because the company is investing heavily in content in order to bolster the appeal of its platforms, hiring new personnel, and increasing its marketing spend. Following the earnings release, Morgan Stanley analyst Alex Poon published a note that maintained an "equal weight" rating on the stock but increased its price target from $11 to $14.

Now what

Bilibili shares have given up some of November's gains, trading down roughly 5.8% in December so far.

Management expects sales for the current quarter to come in between 1.04 billion Chinese renminbi and 1.08 billion renminbi, with the midpoint of that target equaling roughly $150 million based on current exchange rates.

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