Webull stock soars in second trading day after completing SPAC merger

Webull, a popular stock-trading app, saw its shares surge by almost 375% on Monday, marking the second day of trading for the company following its merger with SK Growth Opportunities Corp., a special-purpose acquisition company (SPAC). This rally propelled Webull’s market capitalization to nearly $30 billion, firmly establishing it as a major player in the fintech space.

Competing with industry giants like Robinhood, Charles Schwab, and E-Trade, Webull offers a wide range of investment options, including shares, options, ETFs, and cryptocurrencies. The platform also provides users with advanced tools such as charts, watchlists, screening tools, and paper trading. With over 23 million registered users across 15 global regions, Webull has positioned itself as a leading choice for investors looking to trade in the digital age.

Founded in 2016 by Wang Anquan, a former Alibaba and Xiaomi executive, Webull has attracted investments from top firms like Coatue, General Atlantic, and Lightspeed. The app gained significant traction during the Covid-19 pandemic, as Americans turned to investing with their stimulus checks. According to Anthony Denier, the company’s group president and U.S. CEO, Webull users are known for being more knowledgeable and sophisticated compared to those on rival platforms like Robinhood.

Despite its rapid growth, Webull has faced scrutiny over its ties to China. In November, the U.S. House Select Committee on the Chinese Communist Party sent a letter to Denier seeking clarity on the company’s connections to the Chinese government. Webull has yet to respond to these inquiries, raising concerns about its transparency and compliance with regulatory standards.

The rise of SPACs, like the one that brought Webull to the public markets, reached a peak in 2021 with a record number of IPOs. However, the market for SPACs has since cooled off due to factors like inflation and rising interest rates. With only 23 SPAC IPOs so far this year, the landscape has shifted significantly from the previous year’s frenzy.

Looking ahead, Webull had initially planned to go public in the second half of 2024. As the company continues to navigate challenges and opportunities in the ever-evolving fintech sector, its performance and strategic decisions will be closely watched by investors and industry observers alike.