$Bilibili (BILI.US)$ shares are trading lower by 9.44% to $26.86 Thursday morning, pulling back following a 90% surge over the past month, which was fueled by mounting optimism around China's aggressive stimulus measures aimed at reviving its sluggish economy.

Shares of major Chinese tech companies, including Alibaba, Baidu and JD.com, also experienced declines as concerns over escalating geopolitical tensions in the Middle East dampened investor sentiment.

Bilibili, a popular video-sharing platform with a focus on anime, gaming and youth-centric content, has become one of China's leading online entertainment companies. It caters primarily to Gen Z and millennial users, offering a mix of user-generated content, live streaming, and mobile games.

Despite this strong market position and a recent uptick in its stock price, driven by China's recent stimulus actions, the company remains vulnerable to broader market movements and external risks.

Chinese markets reacted negatively on Thursday, as investors grew cautious amid fears of a potentially expanding conflict in the Middle East. The resulting uncertainty, especially regarding energy prices and global supply chains, has created concerns for emerging markets like China.

An elevated oil risk premium could hurt China's economic outlook, as it is heavily reliant on imported energy. In turn, this may affect consumer confidence and spending, which are crucial for platforms like Bilibili, where advertising revenue and in-app spending are sensitive to broader economic conditions.

Additionally, while China's recently announced measures—such as mortgage refinancing and fiscal spending to stimulate growth—have provided a short-term boost to tech stocks, the sustainability of this recovery remains a question mark.

Bilibili, like other Chinese tech companies, has been navigating a challenging landscape over the past year, facing headwinds from China's regulatory tightening on technology and entertainment sectors, as well as weakened advertising demand.