Jim Cramer on Webull: “I’m Putting That One on the Do-Not-Touch List”

Webull Corporation (NASDAQ:BULL) is one of the 18 stocks Jim Cramer recently shared insights on. During the episode, Cramer mentioned the company and said that he is putting the stock on the “do-not-touch list.” He remarked:

“On April 10th, as everyone was focused on the Liberation Day fallout, Webull came public via SPAC merger… They ditched crypto trading in 2023 as part of the preparation for the SPAC merger that allowed them to come public. But the company seems to be creeping back into crypto now that the deal’s closed, including with a new partnership with an outfit called Kalshi…

So, how do these three brokerages, the platforms, stack up against each other? First, let’s take scale because scale is often what dictates what’s going to win in a brokerage area. At the end of the first quarter… Webull had 24.1 million registered accounts, but it only had 4.7 million funded accounts, keep that in mind, with 12.6 billion in customer assets… Webull and eToro are roughly the same size… Now, what about the financials? We just want to look at revenue growth and some measures of profitability. But comparing the three companies… is surprisingly challenging because they all use different key metrics… For Webull, we use total revenue result… Webull’s been improving rapidly…

For Webull, we see the impact of the company ditching crypto in late 2023 ahead of the deal to come public. Revenue growth disappeared in 2024, and the company’s already modest profits all but disappeared. In the first quarter of this year, however, the numbers improved as it got past the tough comparison period. Revenue grew 32%, not bad. Adjusted operating margin jumped significantly. Very good…

Webull, frankly, I’m putting that one on the do-not-touch list, okay?… I still can’t get past the fact that Webull has 24.1 million registered users, but just 4.7 million funded accounts. What is that about? That tells me that people are treating their Webull account like their DraftKings account, depositing some money, occasionally placing a bet, then moving on.”

A financial analyst looking closely at a stock chart while making investment decisions.

Webull Corporation (NASDAQ:BULL) operates a digital investment platform that allows retail investors to trade a wide range of securities.

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Disclosure: None.