Bilibili Inc. (BILI): A Bull Case Theory

We came across a bullish thesis on Bilibili Inc. (BILI) on Twitter by sigmazerocap. In this article, we will summarize the bulls’ thesis on BILI. Bilibili Inc. (BILI)'s share was trading at $18.15 as of May 20^th. BILI’s forward P/E was 29.15 according to Yahoo Finance.

Bilibili Inc. (BILI) represents a deeply under-monetized yet highly engaged digital media platform, making it a compelling investment opportunity. With an ad ARPU of just $11 compared to global peers at $75–$100, there is substantial upside as the company builds out its advertising infrastructure. BILI stock currently trades at low-teens EBITDA and free cash flow multiples, with significant room for margin expansion as gross margins are expected to rise from 35% to 40–45% over the medium term.

Unlike short-form platforms like Douyin or long-form paid-content platforms like Tencent Video and Youku, Bilibili Inc. (BILI) occupies a unique, unchallenged space as China’s sole scaled equivalent of YouTube, catering to both creators and consumers of user-generated content. Originally centered around ACG (anime, comics, games) content, the platform has successfully broadened into mainstream areas such as vlogs, news, travel, and reviews, mirroring YouTube’s evolution from niche to mass-market. Engagement is off the charts: users spend about 100 minutes per day on the platform—nearly double the time spent on YouTube or TikTok—making it a dominant destination for China’s Millennials and Gen Z, whose average age on the platform is just 25.

With over 340 million monthly active users, Bilibili Inc. (BILI)’s ecosystem extends beyond video to include gaming (hosting 700+ mini-games and popular mobile titles), live-streaming, and e-commerce, creating multiple monetization levers. As China’s consumer and advertising trends rebound over the next 1–2 years, BILI is positioned to unlock significant value, making it a high-conviction holding with a rare blend of growth, engagement, and monetization potential.

Bilibili Inc. (BILI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held BILI at the end of the fourth quarter which was 20 in the previous quarter. While we acknowledge the risk and potential of BILI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BILI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.