FAST NEWS: Goldman, JPMorgan reduce Bilibili holdings 

The Latest: Goldman Sachs, JPMorgan and BNP have all reduced their holdings in online video site Bilibili Inc. (9626.HK, BILI.US), involving the combined sale of more than 4 million shares, according to stock exchange disclosures on Thursday.

Looking Up: Despite the reductions, the stock sold by the three big investment houses was equal to only about 1% of the company’s shares. Such short-term selling could also be for technical reasons, and doesn’t necessarily reflect an institutional investor’s change in outlook on a company.

Take Note: JPMorgan reduced its short position in Bilibili from 5.12% to 4.97%, and Goldman Sachs also reduced its short position from 6.13% to 5.44%.

Digging Deeper: Founded in 2009, Bilibili is a video-sharing website that listed in the U.S. in 2018 and made a second Hong Kong listing in 2021. It reported revenue of 5.8 billion yuan ($815 million) in last year’s third quarter, which was flat from a year earlier. Its net loss narrowed 22% over that period to 1.3 billion yuan, as its operating cash flow finally turned positive. Its average daily active users reached 103 million, up 14% year-on-year, while its average daily usage time rose to 100 minutes.

Market Reaction: Bilibili’s stock rose in morning trade, closing up 3.2% at HK$80.70 at the midday break. The stock now trades near the bottom of its 52-week range.

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