Webull stock price has crashed since going public last year and is now hovering near its all-time low. It was trading at $6.05 on Monday, down sharply from the all-time high of nearly $80. This article explores what to expect ahead of the upcoming earnings this week.
Webull stock in focus ahead of earnings
Webull is a top Chinese fintech company that helps people invest and trade shares of American, Asian, and European companies. It is often seen as China’s answer to Robinhood.
The company went public last year and surged from $10 to $80 within days, in what many analysts believe was part of market manipulation.
Its most recent results showed that its business continued growing in the third quarter of last as volume and number of customers jumped. Its revenue rose by 55% to $156 million, while its adjusted operating profit rose to $36.7 million.
Webull has continued to add members as its platform’s popularity jumps. It ended the third quarter with 25.9 million registered members, up by 17% YoY. This figure does not always carry a lot of weight as anyone can register on the application.
Instead, investors look at its funded accounts for more information. It ended the third quarter with 4.93 million funded accounts, up by 9% from the same period in 2024.
More data shows that customers continued to deposit funds on its platform to trade and invest. Its net deposits rose to $2.1 billion, the second consecutive quarter of gains.
The company has made several actions to boost its revenue growth. For example, it relaunched crypto trading in the United States, allowing customers to trade tokens and access Webull Pay.
Additionally, the company launched its business in the European Union, giving customers a chance to trade American and European equities in one platform. It also launched a bond market trading platform for its American customers.
Analysts believe that Webull’s business continued growing in the last quarter, with the revenue soaring to $161 million, and its annual figure jumping to $567 million. Analysts see the company’s revenue hitting $702 million this year.
Webull has a big growth opportunity ahead and is highly undervalued. It has a forward price-to-earnings ratio of 25, lower than Robinhood’s 30.
However, it faces major headwinds, including the strong competition from Robinhood and incumbent American companies like Interactive Investors and Schwab. Most recently, competition may come from Coinbase, a top company that launched tokenized stocks.
Webull share price technical analysis
The daily timeframe chart shows that the Webull share price has been in a strong downward trend since last year when it peaked at $80.
Consequently, it has remained below all moving averages and the Supertrend indicator, a sign that bears are in control for now.
On the positive side, it has formed a falling wedge pattern, which is made up of two descending and converging trendlines. A rebound normally happens when the two lines are nearing their confluence.
A keen look at shows that the confluence has happened, which may lead to a substantial rebound after earnings. If this happens, the stock may rally to the key resistance level at $10, up by 70% from the current level.
The post Webull stock wedge pattern points to a rebound after Q4 earnings appeared first on Invezz
