Bilibili Stock Downgrade to Hold After Significant Price Surge

Bilibili maintains its asset-light, platform-centric business model, indicating strong profitability potential through growth in advertising and gaming sectors. Having previously recommended a 'buy' at $22.5 due to its attractive valuation, the stock has now climbed to $27-29, making it less appealing relative to my $28 target price. While advertising and gaming growth are expected to remain robust, this outlook is not without uncertainties. In light of increasing market risks, I am adjusting my rating for Bilibili to 'Hold'.