Webull Stock: 2 Reasons to Buy, 4 Reasons to Sell

Webull, the digital investment platform with over 23 million registered users globally, has emerged as a key player in the fintech sector. Yet its stock (NASDAQ: BULL) has seen dramatic swings in 2025, dropping as much as 35% in some periods while surging on optimism over strategic moves. For investors, the decision to buy or sell hinges on weighing its growth potential against deepening financial and operational challenges. Here’s an analysis of the critical factors.

2 Reasons to Buy Webull Stock

1. Strong User Growth and Global Expansion

Webull’s user base has grown to 23 million globally, with operations spanning 15 regions across Asia, Europe, and Latin America. This scale positions it to capitalize on demand for accessible trading tools, fractional shares, and educational resources. A strategic partnership with the Tampa Bay Rays and Tampa Bay Rowdies in 2025 highlights its efforts to expand brand visibility and attract younger, digitally native audiences. Additionally, its inclusion in the NASDAQ Composite Index in early 2025 elevated its market profile, signaling confidence in its long-term viability.

2. Robust Cash Reserves and Strategic Flexibility

Webull holds $1.18 billion in cash and equivalents, providing a liquidity buffer to navigate market turbulence. This financial strength, coupled with its reverse merger completion with SK Growth Opportunities, has fueled investor optimism. Analysts note that its $10.65 billion enterprise value reflects potential for future growth, particularly in emerging markets where fintech adoption is accelerating. The platform’s support for global stocks, ETFs, and futures also positions it to benefit from rising investor diversification trends.

4 Reasons to Sell Webull Stock

1. Profitability Woes Amid Revenue Decline

Despite its user growth, Webull’s financial performance remains uneven. In Q3 2024, reported operating revenue dropped to $68.9 million, while expenses surged to $112.6 million, resulting in an operating loss of $10.7 million. Year-over-year revenue fell 5.9%, underscoring struggles to convert users into profitable outcomes. Even its $102 million total revenue in the same quarter, which initially seemed promising, failed to offset rising costs, leaving profitability under pressure.

2. Overvaluation Risks

The stock’s Price-to-Sales (P/S) ratio of 24.6x—far exceeding industry norms—suggests investors are betting heavily on future growth rather than current fundamentals. For context, fintech peers like PayPal or Square (now Block) trade at P/S ratios under 5x. This disconnect between valuation and earnings raises the risk of a correction if growth fails to materialize or costs remain uncontrolled.

3. Regulatory and Operational Headwinds

Webull’s Form 20-F filing with the SEC highlights its compliance efforts, but its $646 million in minority interests and operational inefficiencies (e.g., $10.7 million operating loss) signal underlying financial fragility. Additionally, the company faces regulatory scrutiny in multiple jurisdictions, including the U.S., where fintech firms face heightened oversight. Any misstep could amplify liquidity pressures or erode trust.

4. Analyst and Market Skepticism

Market sentiment has swung wildly in 2025. While some traders view Webull as a “high-risk, high-reward” play, prominent voices like Jim Cramer have dismissed it as an “absolutely no” investment, citing unproven profitability. The stock’s volatility—plunging 10.65% in a single day in April after hitting a high of $42.99—reflects this skepticism. Analysts like Tim Bohen caution investors to “let the stock prove itself” through consistent earnings, not just liquidity or partnerships.

Conclusion: A Stock of Contrasts

Webull’s 23 million users, global footprint, and $1.18 billion in cash offer undeniable growth potential. However, its operating losses, 24.6x P/S ratio, and reliance on speculative sentiment paint a cautionary picture. While the Nasdaq listing and strategic moves may attract short-term traders, long-term investors must weigh the risks: a 5.9% revenue decline and $10.7 million operating loss highlight execution challenges. Until profitability stabilizes and valuation aligns with fundamentals, Webull remains a high-risk bet for aggressive traders, not core holdings. For now, the scales tip toward caution—unless the company can turn its user growth into sustainable profits.