Webull Shares Plunge 5.88% as Block Trade, Lock-Up Expiration Drive Selloff

Webull (NASDAQ: WBUL) shares fell to their lowest level since June 2025 on October 8, 2025, with an intraday decline of 5.88%. The selloff followed a large-scale institutional block trade and the expiration of a lock-up period, which combined to intensify downward pressure on the stock.

The block trade involved the sale of 3 million Class A shares at a 2.3% discount to the previous day’s closing price, accounting for 1.3% of Webull’s public float and 16% of its 20-day average trading volume. This marked the third such transaction in two weeks, signaling a strategic reduction in institutional holdings. The lock-up expiration further exacerbated the situation by releasing 455.6 million previously restricted shares into the market, creating a liquidity surge and amplifying investor concerns about undervaluation.

While institutional selling dominated the immediate decline, retail investor sentiment remained cautiously optimistic. Discussions on trading platforms surged, with many viewing the discounted price as a buying opportunity. However, the magnitude of institutional activity overshadowed retail optimism, reinforcing perceptions of short-term weakness. Analysts noted that the sell-off reflected structural market dynamics rather than a fundamental deterioration in Webull’s business, which reported a global user base of 24 million and projected annual revenue growth exceeding 25% through 2027.

Webull faces the challenge of stabilizing its stock price while maintaining confidence in its long-term growth narrative. Management may need to address the overhang from the lock-up expiration through transparent communication and potential capital allocation strategies. The event underscores broader trends in fintech, where post-IPO volatility is increasingly tied to shareholder exits and institutional portfolio adjustments, rather than operational performance alone.