Webull Corp (BULL) shares traded roughly flat Friday after the online broker posted third-quarter results that blew past Wall Street's expectations. Which raises an obvious question: why is a company that just crushed earnings sitting at an all-time low?
The Numbers Tell a Growth Story
Webull's third quarter was legitimately impressive. Revenue rocketed 55% higher year-over-year to $156.9 million, comfortably ahead of the $135.6 million analysts expected. Adjusted earnings came in at 7 cents per share versus the 2-cent consensus, more than tripling expectations.
The company flipped from last year's loss to net income of $21.7 million as trading activity picked up steam, driving equity and options revenue higher. Customer assets climbed 84% to hit a record $21.2 billion. Funded accounts grew 9% to 4.93 million, while registered users increased 17% to 25.9 million.
Webull also continued building out its platform during the quarter. The company relaunched cryptocurrency trading in the United States, expanded operations into Europe, and rolled out its Vega AI analytics tool alongside corporate bond trading capabilities.
Management emphasized that revenue growth is outpacing expenses, even as the company invests in geographic expansion, technology development, and new products while maintaining profitability. The balance sheet looks solid too, with $654.8 million in cash and cash equivalents and $3.3 billion in total current assets at quarter's end.
Wall Street Lowers the Bar
Here's where things get interesting. Despite the strong quarter, Rosenblatt Securities analyst Chris Brendler kept his Buy rating on Webull but slashed his price target to $15 from $19. That's still well above the current trading price, but the downward revision suggests concerns about near-term momentum.
According to stock ranking data, Webull currently holds a Value score of 14.16 with negative price trends across short, medium, and long-term timeframes. In other words, the fundamentals might look decent, but the chart is telling a different story.
Price Action
Webull shares were down 1.33% at $8.35 at the time of publication Friday. For a company that just reported accelerating growth and swung to profitability, the market's lukewarm response is notable. Sometimes good news just isn't enough to change investor sentiment, especially when technical indicators are flashing warning signs.
The disconnect between Webull's operational performance and its stock price highlights one of the market's quirks: earnings beats don't automatically translate to stock gains. Investors may be worried about valuation, competition from established players, or simply taking a wait-and-see approach before jumping in. Whatever the reason, Webull's management team will need more than one strong quarter to convince the market its growth story has legs.