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.
Key Forecasts and Targets
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Kuaishou: Price target set at HK$75
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Positioned for EBITDA inflection as ad innovations and AI tools improve monetization
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Bilibili: Price target set at $28
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Expected to see 20%+ annual earnings growth, driven by mobile games and AI-powered advertising
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Thematic Tailwinds: Videolisation and AI Monetization
Bernstein’s thesis rests on two structural trends:
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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.
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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.
Relevant APIs for Fundamental Insights
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Track Bilibili’s quarterly earnings performance and year-over-year growth in line with Bernstein’s projections.
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Evaluate long-term rating trends and risk-adjusted outlooks on both Kuaishou and Bilibili to assess alignment with Bernstein’s bullish view.
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Bottom Line
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.
