Bilibili's (NASDAQ: BILI) stock surged more than 60% over the past 12 months as the Chinese tech company dazzled investors with a streak of robust revenue growth. Yet Bilibili remains unprofitable, and the stock isn't cheap at five times next year's sales.
Despite those challenges, I believe that five tailwinds could lift Bilibili's stock even higher in 2020.
Bilibili's platform provides anime, comics, and gaming (ACG) content. The company claims that members of China's Generation Z, who were born between 1990 and 2009, account for over 80% of its users.
iResearch claims that China's online entertainment market will be worth 1.1 trillion yuan ($160 billion) by 2023, and that Gen Z users will account for nearly two-thirds of that market. That explains why Bilibili's monthly active users (MAUs) grew 39% annually to 127.9 million last quarter.