US Stock Market Move | Bilibili, Inc. Sponsored ADR Class Z (BILI.US) Leads Chinese Stocks Soaring 15%, Upgraded by Goldman Sachs Group, Inc.

Bilibili, Inc. Sponsored ADR Class Z (BILI.US) stock price rose on Thursday, closing up 15.44% at $21.09. On the news front, boosted by China's economic stimulus policies, Chinese assets continued to rise overnight in what was dubbed "Super Thursday," with the Nasdaq China Golden Dragon Index up 10.9%. Billionaire investor David Tepper even recommended investing in "buying everything" related to China. Tepper is not the only one bullish on the Chinese stock market. Goldman Sachs Group, Inc.'s bulk brokerage business saw hedge funds aggressively buying Chinese stocks on Tuesday, while Morgan Stanley strategist Laura Wang predicts that the Shanghai-Shenzhen 300 Index will rise another 10% soon. Prior to the recent stock market rally, Tepper and Michael Burry of Scion Asset Management (the prototype character in the film "The Big Short") were among the few hedge fund investors bullish on the Chinese stock market. Furthermore, Goldman Sachs Group, Inc. released a research report stating that they have raised their rating on BILIBILI-W (09626) from "Neutral" to "Buy" and raised their target price from HK$129 to HK$176, as the company is entering a profit growth cycle, strengthening its business model and achieving profitability, benefiting from higher profit advertising and gaming business. The bank believes that the company's net profit margin will reach 10-15% by 2026 as a result of market financial forecast upgrades in the next 6-12 months, driven by better new game lifecycles, faster advertising growth than peers, and cost discipline improvements. The market still underestimates its gaming business contribution and advertising monetization potential, supporting the bank's forecast of a 40% higher-than-market-expected earnings per share forecast for 2025-26. Goldman Sachs Group, Inc. raised the company's gaming revenue forecast, with figures for 2024-25 higher than market forecasts by about 12%; higher profit estimates, expecting operating profit margins of 7% and 12% for 2025-26 respectively; raised earnings per share forecast for 2025-26 by over 60%. The current target price reflects a forecasted P/E ratio of 16 times in 2026, an enterprise value multiple of 9.5 times, with the bank believing that the premium valuation is still fair compared to peers.