Shares of trading app Webull increased by nearly 375% on April 14, 2025

This marked the company’s second day on the market after merging with SK Growth Opportunities Corp, a special-purpose acquisition company (SPAC).

This surge places Webull’s market capitalization at nearly US$30 billion.

Founded in 2016, Webull offers trading for stocks, options, ETFs, and cryptocurrencies, with over 23 million users globally.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ SPAC success amid industry cooldown highlights shifting market cycles

Webull’s extraordinary 375% post-SPAC surge stands in stark contrast to the broader SPAC market, which has experienced a dramatic cooldown since its 2021 peak.

SPAC activity collapsed from a record 613 IPOs in 2021 to just 77 de-SPAC merger announcements in the first half of 2022, with 143 SPAC IPOs withdrawn by August 2022 1.

Most SPACs have struggled with soaring redemption rates, which averaged over 81% in 2022 (compared to just 7-43% in early 2021), severely limiting the cash available for acquisitions 1.

The typical SPAC now faces longer timelines to complete deals, with hundreds at risk of liquidation if they can’t find suitable targets before their deadlines expire.

Webull’s successful SPAC merger and subsequent stock surge represent a rare bright spot in this challenging landscape, suggesting investor appetite for certain sectors remains strong despite the broader SPAC market retreat.

2️⃣ Retail trading platforms continue attracting significant investor interest despite mixed growth outlook

Webull’s dramatic valuation surge comes despite modest growth projections, with the company expecting essentially flat revenue of $390.2 million for 2024.

The company reported 4.3 million funded accounts and $8.2 billion in customer assets at the end of 2023, competing in a crowded field that includes Robinhood, Charles Schwab, and E-Trade 2.

This enthusiasm mirrors broader retail investor behavior, with community sentiment polls showing 34% of respondents bullish on Webull long-term and 31% positive for short-term trading prospects 3.