China Crackdown is Crushing These 5 Stocks

4. Bilibili Inc. (NASDAQ:BILI)

Number of Hedge Fund Holders: 47  

Percentage Decline in Share Price Over Past Three Months: 44%

Bilibili Inc. (NASDAQ:BILI) is a Shanghai-based company that markets online entertainment services like video services, mobile games, and other value-added services. It is placed fourth on our list of 10 stocks that the China crackdown is crushing.

On August 20, investment advisory HSBC maintained a Buy rating on Bilibili Inc. (NASDAQ:BILI) stock but lowered the price target to $127 from $140. Charlotte Wei, an analyst at the advisory, issued the ratings update. 

At the end of the second quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $2 billion in Bilibili Inc. (NASDAQ:BILI), down from 53 in the preceding quarter worth $3 billion. 

In its Q4 2020 investor letter, Tao Value, an asset management firm, highlighted a few stocks and Bilibili Inc. (NASDAQ:BILI) was one of them. Here is what the fund said:

“Bilibili (ticker:BILI) similarly reported a blast Q3 2020. Bilibili reached average MAU of 197m with high 7.6% pay ratio, showing strong user growth and high engagement. Additionally, the high margin advertisement segment showed exceptionally strong trend, growing 126% yoy. Though surprising to many, I think it is a natural outcome of building an ever-more valuable user generated contents platform. If it is not by ads, I believe these values created by Bilibili will accrue to it in other ways. One interesting data point is that management mentioned the average age of new cohorts are still around 20, indicating it is still in its early stage of a long growth runway. I am happy to see this position played out like how I envisioned in original thesis and will be excited to continue to follow its progress.”