UBS Group AG's Long Position In Bilibili Increases To 7.26%, Says HKEX

Bernstein identified Tencent and Alibaba as key players in China's AI-driven internet sector, noting their AI advancements and potential returns. Tencent is negotiating a $1.5B acquisition and launched a new payment app. Alibaba's leadership bought significant shares, and Bernstein maintained an Outperform rating despite cutting its price target. Bernstein also favors Boss Zhipin and NetEase.

Bilibili's stock surged 5.1% to $15.61 on increased call option activity and an analyst fair value revision to $28.51, citing strong gaming performance and resilient advertising revenue. The company's upcoming shareholder meeting will vote on a $200M share repurchase and convertible notes subscription by Tencent. The broader U.S. market also gained 0.3-0.4%.

Bilibili (BILI) shares rose ahead of an October 28 shareholder meeting expected to approve a $200M share repurchase and a $200M convertible note investment from Tencent. The company has shown 16 straight quarters of gross margin improvement, boosting investor confidence. Risks include shrinking mobile-games revenue and rising leverage.

AMD acquired AI lab World Labs for $8.2B in an all-stock deal. Meta unveiled lightweight VR glasses at Connect 2026. Capcom and Nexon joined GAMR's gaming index, while Bilibili was removed. AMD and Meta contributed 5.3 percentage points to the index's return, offsetting losses elsewhere. GAMR had $41M in net assets and a 0.59% expense ratio as of September 30.

Bilibili (BILI) completed a $700M Eurobond offering with Goldman Sachs and Morgan Stanley as underwriters. The stock is down 41.07% YTD but has a 3-year total shareholder return of 12.61%. Analysts debate its valuation, with some seeing it as undervalued at $15.54 vs. a fair value estimate of $27, while others note its high P/E ratio of 28.4x.

Bilibili (9626.HK, BILI) is restructuring $700M capital, converting Tencent's 9.6% stake into convertible notes. Tencent will receive $200M in notes, sell shares, and Bilibili will repurchase shares to support its price. Bilibili's Q2 revenue rose 8% to 7.94B yuan, with net profit up 55% to 339M yuan. Nomura maintains a 'neutral' rating with a $18 price target.