Webull falls 19.1% after House committee report on China ties

What happened

Webull (BULL) fell 19.1% on October 7, 2026, after a bipartisan House Select Committee released a report concluding Webull has structural links to the Chinese government. The stock opened 19.9% below the previous close and trading volume was 6.6 times its 20-day average as news coverage from outlets including CNBC and Barron's drove heavy selling. Webull disputed the report, saying it contained inaccuracies and unsupported conclusions.

How big was the move

The drop was a large, mostly company-specific move: the stock fell 19.1% while the S&P 500 fell 0.2% and the technology sector median fell 1.1%, a performance 18.0 percentage points worse than the sector median. The move was 4.0 times a typical daily move for this stock and the stock has a beta of 0.53, which means the stock tends to move less than the market. Over the last five sessions the stock fell 15.5% while the S&P 500 rose 2.0%.

The technical picture

The stock was trading well below its shorter-term averages: it is 23.7% below its 20-day moving average and 27.2% below its 50-day moving average, while it is 16.4% below its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend despite the recent decline. The Relative Strength Index (14 days) is 27, below 30, a level often called oversold. The stock is 56.8% below the 52-week high. Over one month the stock fell 38.5%, over three months it fell 19.3%, and over one year it fell 57.0%, leaving it 72.8 percentage points behind the S&P 500. Volatility is 75% annualized over 60 days, higher than 87% of its own readings over five years.

Fundamentals and valuation

For the four quarters through June 30, 2026, the company reported revenue of $680.9 million, which grew 48.5% from a year earlier and followed growth of 47.2% one quarter earlier. Diluted earnings per share were $0.08, a figure that fell 52.7% from a year earlier, while gross margin was 77.5% (a year earlier: 78.1%) and operating margin was 12.4% (a year earlier: 4.6%). Free-cash-flow margin is 0.0% and return on invested capital is 1.3%. The balance sheet showed net cash of $622.9 million, and share count over one year increased by 25.8%.

Valuation measures are elevated: the stock trades at 71.8 times trailing earnings, higher than 50% of its own readings over the past five years (five-year median: 60.0 times earnings). Price to forward earnings is 28.4 times expected earnings and free-cash-flow yield is 0.0%.

Earnings and analyst expectations

The company's last report, on August 19, 2026, showed earnings per share of $0.07 against $0.04 expected, 55.6% above estimates. Webull has beaten estimates in one consecutive quarter and its average surprise over the last four reports was 73.2% above estimates. The typical two-day reaction after recent reports was the stock rose 2.4%. The next report is scheduled for November 19, 2026. Analysts' consensus price target is $12.00, which is 103.7% above the closing price.

What to watch

• November 19, 2026: next earnings report date
• The bipartisan House Select Committee report and any follow-up statements or hearings reported by outlets including CNBC and Barron's
• Announcements from law firms conducting securities investigations such as Levi & Korsinsky, Rosen Law Firm, Frank R. Cruz, and others
• Trading volume relative to its 20-day average and any intraday prices reported during extended volatility
• Changes in analyst coverage or revisions that would affect the price to forward earnings