Bernstein has initiated coverage of Kuaishou Technology and Bilibili Inc. (NASDAQ:BILI) with Outperform ratings, citing a structural shift in digital media consumption toward video-based formats. This move aligns with growing global trends in “videolisation,” where both short-form and long-form video platforms are grabbing increasing digital ad budgets.
Kuaishou: Price target set at HK$75
Positioned for EBITDA inflection as ad innovations and AI tools improve monetization
Bilibili: Price target set at $28
Expected to see 20%+ annual earnings growth, driven by mobile games and AI-powered advertising
Bernstein’s thesis rests on two structural trends:
Videolisation of the Internet: A shift from static content (text/images) to dynamic video formats is expected to raise the sector's ad share by ~1.5% annually.
AI-Enhanced Ad Targeting: Artificial intelligence tools are sharpening ad targeting, boosting cost-per-mille (CPM) rates, and enhancing ad inventory efficiency across platforms.
Kuaishou’s Kling engine and Bilibili’s focus on professionally user-generated video (PUGV) uniquely position both firms to ride this digital advertising wave.
Track Bilibili’s quarterly earnings performance and year-over-year growth in line with Bernstein's projections.
Evaluate long-term rating trends and risk-adjusted outlooks on both Kuaishou and Bilibili to assess alignment with Bernstein’s bullish view.
As online attention shifts from static content to immersive video, platforms like Kuaishou and Bilibili are set to benefit from rising ad budgets, AI-driven monetization, and genre-specific user engagement. With strong secular growth trends and improved platform economics, Bernstein sees both companies as core holdings in the evolving digital entertainment ecosystem.
