Webull’s shares experienced a dramatic surge of nearly 375% on Monday, marking the second trading day for the stock after the company finalized its merger with SK Growth Opportunities Corp., a special-purpose acquisition company (SPAC), just one week prior. This significant rally has propelled Webull’s market capitalization to nearly $30 billion.
The trading app finds itself in competition with established players such as Robinhood, Charles Schwab, and E-Trade. The platform allows users to trade individual stocks, options, ETFs, and cryptocurrencies, while also providing various trading tools, including charts, watchlists, and paper trading options.
Currently, Webull boasts over 23 million registered users across 15 countries. Besides generating revenue through trading fees, it offers a premium subscription service for $40 per year that provides users with real-time data.
In a recent investor presentation, Webull projected revenues of $390.2 million for 2024, which represents little change from its anticipated performance in 2023.
Founded in 2016 by former Alibaba and Xiaomi executive Wang Anquan, who currently serves as the global CEO, Webull has attracted investment from firms such as Coatue, General Atlantic, and Lightspeed. The platform gained significant traction during the COVID-19 pandemic, as many U.S. citizens invested their stimulus checks. Anthony Denier, Webull’s group president and U.S. CEO, previously noted that the app’s user base tends to be “much more intellectual” compared to that of Robinhood.
In November, the U.S. House Select Committee on the Chinese Communist Party sent a letter to Denier seeking information regarding Webull’s connections to China. The company has not yet responded to inquiries regarding this matter.
The SPAC market experienced a boom in 2021, with 613 initial public offerings (IPOs) completed, according to data from SPAC Insider. However, a downturn followed in 2022, as rising inflation and interest rates led investors to shy away from higher-risk investments. Thus far in 2023, only 23 SPAC IPOs have occurred.
Webull had previously indicated plans for its market debut to occur in the latter half of 2024.
