Key Takeaways
- Webull shares fell 22% after a bipartisan House Select Committee on China report found the brokerage is tied to China’s government in structural ways.
- About 90% of Webull’s 2025 revenue came from US customers, so any action by US regulators would reach nearly the whole business.
- Analysts expect revenue to grow from $571 million in 2025 to $981 million in 2027, and that growth is what’s at risk.
- Webull’s forward P/E has dropped to [about 18x], far below its one-year average of 43.3x, and the discount looks earned until the company answers the report.
Webull (BULL) shares sank 22% premarket this morning after a congressional panel said the brokerage’s American image doesn’t match who actually controls it.
The bipartisan House Select Committee on China found “a profound gap” between Webull’s marketing as “an American company” and who actually controls the Florida-based firm. The committee shared its report exclusively with CNBC ahead of its release.
What the committee found
The committee says Webull’s “ownership architecture, technical workforce, technology infrastructure, cross-border data routing, corporate financing, and compliance frameworks are tied in structural ways to the People’s Republic of China.” Among its points:
- Webull holds $24.6 billion in customer assets.
- It uses a subsidiary based in mainland China for technology development and platform operations.
- Concerns have “escalated” since October 2025, when Webull began carrying customer cash directly.
Rep. John Moolenaar (R-Mich.), who chairs the committee, put it bluntly: “Investors should heed this information when choosing who they do business with.”
Webull didn’t immediately respond to CNBC’s request for comment.
Almost all of it is American money
This is where it gets uncomfortable. Webull’s annual report shows $516.5 million of its $571 million in 2025 revenue came from US customers. That’s roughly 90% of the business sitting within reach of US regulators.
And analysts expect (well, or expected…) that business to keep growing fast, to $806 million in revenue this year and $981 million in 2027…
Of course, action by US regulators against Webull’s US business would likely push them down. And so could consumer action if Americans read the report and decide to go elsewhere, as well.
Is the drop overdone?
Webull went into Wednesday at 26x forward earnings. That was already near its one-year low of 24.7x and far below its 43.3x average…
At this morning’s price, it falls even further.
That looks cheap for a company growing revenue this fast. Still, I think the discount is earned. A committee report can’t fine Webull or shut it down. But it puts the company’s China ties on the record in Washington, and nearly all of Webull’s revenue is made in the US. Until Webull answers the report’s specifics, a discount this wide makes sense to me.
Of course, a detailed response showing where Webull’s code and customer data actually live could change that picture quickly.
So what is Webull stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what Webull could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
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