Webull Stock Could Soar 100% This Year, Analyst Says

Core Viewpoint - Webull Corp. is experiencing a focus on its stock following Rosenblatt Securities' reaffirmation of a Buy rating, indicating that while heavy marketing expenses are impacting near-term profits, they are positioning the company for stronger performance in 2026 [1] Group 1: Stock Performance and Valuation - Rosenblatt analyst Chris Brendler has cut the 12-month price target for BULL from $15 to $12, now valuing the stock at 20 times the adjusted EBITDA for 2027, down from 25 times previously [2] - Webull's stock closed at $6.07, suggesting approximately 100% upside to the new target, with a market capitalization of around $3.2 billion [2] Group 2: Financial Performance - Webull reported fourth-quarter 2025 revenue of $165.2 million, exceeding both Rosenblatt's estimate of $162.7 million and the Street consensus of $150.9 million, driven by strong trading activity [3] - Daily average revenue trades reached 1.2 million, with equity notional volumes increasing to $239 billion and trading revenue hitting $112.5 million [3] Group 3: Marketing and Profitability - Despite the revenue beat, adjusted operating profit fell short of expectations, with operating expenses rising to $143.6 million compared to Rosenblatt's estimate of $122.8 million [4] - Marketing and branding expenditures surged by 81% quarter-over-quarter to $53.3 million, which management described as a performance-driven initiative to attract high-value active traders following record net deposits of $3.9 billion [4] Group 4: Future Outlook and Strategy - Rosenblatt noted that operating margins, excluding marketing costs, reached 45%, indicating strong underlying leverage once spending normalizes [5] - Management anticipates a significant reduction in marketing expenses in the first quarter of 2026, suggesting that the recent increase was opportunistic rather than a structural change [5] - Webull is positioning itself as a platform for "serious" self-directed investors, focusing on creating an institutional-grade, mobile-first ecosystem for highly engaged retail traders [6] - The company is experiencing rapid growth in prediction markets, cryptocurrency, premium subscriptions, and international users, reinforcing its engagement-driven growth narrative [7]