Webull stock price gets highly oversold: is it a buy ahead of earnings?

Webull stock price has been in a strong bearish trend in the past few months, erasing all gains it made shortly after going public a few months ago. BULL was trading at $8.80 on Friday, down sharply from the all-time high of $79.5. So, is BULL stock a good buy ahead of its earnings?

Webull stock price technical analysis 

The daily timeframe chart shows that the BULL stock price surged from the IPO level of $10 to a high of $79.52 within days. This surge made it one of the best-performing IPOs of the year. 

BULL stock price then pared back these gains, culminating to a drop to a record low of $8.80. This plunge has brought its market cap from a record high of $28 billion to the current $4.28 billion. 

The daily chart shows that it has continued falling in the past few months. It has moved below the important support at $10.19, its lowest swing in July this year. This price was the lower side of the inverse cup-and-handle pattern. 

Webull share price has remained below the 50-day Exponential Moving Average (EMA). That is a sign that bears remain in control for now. 

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The Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have continued falling in the past few months. The RSI has moved below the oversold level, while the Percentage Price Oscillator (PPO) has dropped to a record low.

Therefore, the most likely scenario is where the BULL stock price rebounds, potentially after its earnings this week. Such a move will see it rebound to the key resistance level at $10.18, which is about 17% above the current level.

Webull earnings ahead

The main catalyst for the Webull share price is the upcoming earnings, which will shed more light on its business. These results will provide more information on whether its business is growing. 

The most recent results showed that its revenue jumped by 46% YoY to $131 million. Notably, the company’s adjusted operating expenses rose modestly to $108 million. 

The results revealed that the number of registered users rose to 24.9 million, up by 18%. Its funded accounts rose by 9% to 4.73 million. Most importantly, the company’s assets jumped by 64% to over $15.9 billion. 

The company anticipates that its business will continue doing well by adding customers in its core markets and in new ones. For example, it has moved to Latin America, where it offers services in countries like Brazil and Mexico. It also expanded to the Netherlands and Australia.

Webull also aims to grow by adding more services to its network. For example, it has partnered with Kalshi to offer prediction markets, one of the hottest businesses today. 

The company has also expanded to the cryptocurrency market, which has delivered strong numbers for Robinhood, its top rival in the United States. 

Analysts expect the upcoming results showed that its revenue will be $137 million, up from $101 million in the same period last year. The most optimistic analyst expects its revenue to come in at $141 million. 

Analysts also believe that the company’s annual revenue will be $529 million, followed by $689 million next year. Its earnings per share (EPS) is expected to rise to $0.1, followed by $0.17 in 2026.

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