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Bilibili (BILI) Stock Jumps 11.9%: Will It Continue to Soar?

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Bilibili (BILI - Free Report) shares soared 11.9% in the last trading session to close at $92.56. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 34.1% loss over the past four weeks.

This marks the third consecutive day of Bilibili’s price increase. The company's top-line is riding on contributions from a solid content portfolio, robust game offerings, growing recognition of the company’s brand name in China's online advertising market and a widening audience base.

Steady increase in the number of paying users for the company’s premium membership program, live broadcasting services and other value-added services  remains a key growth driver.

This Chinese video sharing website is expected to post quarterly loss of $0.47 per share in its upcoming report, which represents a year-over-year change of -147.4%. Revenues are expected to be $653.21 million, up 76.3% 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 >>>>

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