why did webull stock go up?

This article explains why did webull stock go up, summarizing the April 2025 multi‑hundred percent spike after Webull’s SPAC listing. It covers the SPAC deal terms, a trading timeline, supply/deman...

2025-11-20 16:00:00

By Cyber Fusion

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why did webull stock go up?

Overview

For readers asking why did webull stock go up, the short answer is that a convergence of SPAC deal mechanics, constrained supply, intense retail momentum and a favorable narrative pushed orders far beyond available shares in April 2025. As a result, Webull Corporation (ticker: BULL) surged several hundred percent on its second trading day after completing a SPAC merger. This article explains the timeline, the structural drivers, company fundamentals cited around the listing, and the risks investors and observers should weigh when they see similarly dramatic moves.

As of April 2025, according to CNBC and Bloomberg reporting, the surge unfolded amid unusually thin tradable float after the merger closing and heavy social‑media amplification that propelled buying interest onto public markets and options flows.

This guide is written for readers who want a clear, step‑by‑step account of why did webull stock go up, how market mechanics and narratives interacted, and what metrics to check when evaluating post‑SPAC volatility. If you want to track new listings or trade responsibly, consider comparing liquidity and float details on a trusted exchange such as Bitget and managing risk carefully.

Background

Webull is a retail brokerage platform offering commission‑free trading in stocks, options, ETFs and cryptocurrencies, alongside market data and mobile trading tools. Prior to its public listing via the SPAC transaction in April 2025, Webull highlighted rapid user growth, increased trading activity, and expanding product coverage as core operational strengths.

As of filings and press materials around the listing, Webull reported tens of millions of registered users, accelerating deposits and growing assets under custody (AUC). These operational highlights formed part of the narrative used by media and retail investors to frame the company as a fast‑growing fintech platform appealing to active retail traders.

Investors asking why did webull stock go up commonly point first to user and trading metrics. However, as the later sections show, the price spike was not explained by fundamentals alone — structural and behavioral market forces played a leading role.

SPAC listing and deal terms

Webull went public through a merger with SK Growth Opportunities Corp., a special purpose acquisition company (SPAC). Key features of the transaction that mattered for secondary trading dynamics included:

Completion and initial trading: the merger completed in April 2025 and the combined company began trading publicly under the ticker BULL (and listed associated public warrants under a separate ticker). As of April 2025, reports confirmed the first and second trading days that produced the extreme price action.
Sponsor and anchor investor arrangements: the SPAC sponsor and an SK Inc. subsidiary played anchor roles. Sponsor holdings, sponsor‑related lockups and any non‑redemption incentives were reported in transactional disclosures. These arrangements reduced the immediately available free float relative to total outstanding shares.
Float and redemption mechanics: SPAC transactions often permit public investors in the shell to redeem cash rather than convert into shares, which changes starting float unpredictably. Management and sponsor decisions about roll‑overs and PIPE (private investment in public equity) allocations can further limit tradable supply in the earliest trading sessions.

As of April 2025, according to Webull press releases and contemporaneous reporting, some sponsor and anchor share allocations were not immediately tradable or were held by insiders who did not sell into the open market, tightening available supply on day‑one and day‑two trading.

Timeline of the price move

This chronological account focuses on the key trading events that answered the question why did webull stock go up.

Initial trading day: On Webull’s first day of public trading after the SPAC close in April 2025, BULL listed at an opening price that reflected the negotiated deal price plus initial retail and institutional interest. Trading volumes were above average for recent SPAC openings, but prices were relatively range‑bound as the market absorbed the new supply.
Second trading day surge: On the second trading day, BULL experienced an extreme surge — jumping several hundred percent intraday from its prior close. Intraday highs reached several multiples of the opening price, and the stock traded at a peak market capitalization significantly above the transaction’s reference valuations. The swift move concentrated in a narrow time window and coincided with surging order flow, option activity and intense retail discussion.
Immediate post‑surge behavior: Following the intraday peak, BULL saw rapid profit‑taking and intraday pullbacks. Volatility remained elevated in after‑market sessions. Some intra‑day rallies were followed by steep retracements as sellers met the eager buyers.
Short covering and settlement: In the days after the spike, trading patterns showed both additional volatility and episodes of heavy volume as participants recalibrated positions, closed short bets, or took profits. Week‑to‑week trading ranges expanded compared with usual post‑SPAC behavior.

Multiple contemporaneous accounts and trade prints supplied the raw data points that led market participants to ask why did webull stock go up — and the answer required looking beyond the company ticker to market structure and retail behavior.

Contributing factors to the surge

Several overlapping drivers help explain why did webull stock go up so aggressively. These fall into behavioral, structural, informational and microstructure categories.

Retail momentum and social sentiment

One primary explanation for why did webull stock go up is concentrated retail momentum. Social media platforms, chat forums and retail‑focused networks amplified bullish narratives about Webull’s user growth and product mix. Threads and posts on high‑traffic forums often spotlighted the stock as a candidate for aggressive short‑term gains, which attracted momentum traders and smaller accounts seeking quick returns.

Retail momentum effects commonly include frantic buying on headlines, viral posts, and coordinated attention that compresses into brief buying windows. Because many retail traders use mobile apps, small orders can aggregate quickly and move prices when supply is limited.

Supply/demand mechanics and float dynamics

A second major reason why did webull stock go up relates to limited tradable float. SPAC merges often leave a large portion of a company’s total shares effectively unavailable for immediate trading due to:

Sponsor and founder holdings subject to lock‑ups.
PIPE investor allocations that may include share restrictions.
SPAC redemption outcomes changing the mix of cash vs. shares held by public investors.

When demand from retail buyers far exceeds the available shares, upward price pressure can be extreme. With fewer shares changing hands, each incremental buy order has a larger price impact. That mechanical effect was central to why did webull stock go up during the early trading sessions.

Deal structure and anchor investor signals

Another contributing factor was how anchor investor involvement was interpreted. When a sponsor or anchor investor is perceived to have confidence in a deal — either by rolling shares, foregoing immediate sales, or participating in a PIPE — retail markets frequently read that as a positive signal. In Webull’s case, reports that an SK Inc. subsidiary and the SPAC sponsor retained meaningful positions and that some sponsor shares were not immediately sold reduced net available supply, which supported the surge.

Investors often equate large, non‑selling anchor stakes with conviction; in fast‑moving retail contexts that perception can become self‑fulfilling, feeding the buying wave that helps explain why did webull stock go up.

Media coverage and narrative

Media headlines and repeated coverage also helped sustain buying. Once mainstream and financial outlets reported the rapid gains, a broader audience of traders and investors became aware of the move. Coverage that framed the event as a “meme‑style rally” or a notable SPAC breakout attracted additional attention, reinforcing trading momentum.

As of April 2025, according to reporting across major outlets, the volume and tone of coverage — from tech and finance outlets to general business press — contributed to increasing the pool of interested buyers in the hours after the surge began.

Product and business fundamentals

While the immediate price action was mostly structural and sentiment‑driven, Webull’s underlying metrics provided supporting context that retail and some institutional participants cited when deciding to buy. Reported metrics around the listing included:

Registered user totals in the tens of millions (public statements gave aggregate registered users rather than consistently active user counts).
Assets under custody (AUC) and customer deposits reported to be growing, though aggregate AUC figures varied across disclosures.
Revenue growth and guidance cited in investor materials projecting continued expansion as the company monetized trading and subscription offerings.

Such operational indicators helped frame narratives about growth potential. Still, many analysts cautioned that market pricing during the surge reflected momentum more than long‑term valuation alignment.

Market microstructure and derivatives

Derivatives activity and market microstructure effects can dramatically amplify moves. When options volume surges on a small‑float stock, market‑makers hedge their positions by buying underlying shares, a dynamic known as gamma hedging. Large options flows or concentrated leveraged positions can cause market‑makers to buy the stock into the rally, further driving prices upward.

Short covering is another mechanism that can accelerate an upward move. If short sellers face sustained price pressure they may buy shares to close positions, adding to demand in a compressed market. Combined with high intraday volume and low liquidity, these forces help explain why did webull stock go up so sharply.

Market context and comparisons

Placing the Webull surge in context: the event occurred within a broader environment of heightened retail influence and renewed interest in SPAC listings. Since early 2021, retail investors have repeatedly demonstrated their ability to move individual securities, and the SPAC pipeline frequently produced stocks with compressed initial floats and large narrative momentum.

Comparisons to prior high‑momentum IPOs and SPAC listings show similarities: rapid multi‑day gains driven by retail interest and limited supply, followed by volatile corrections and mixed medium‑term returns for investors who entered at peak prices. The Webull episode fits this pattern: a story‑driven rally layered onto a structural float shortage.

Regulatory, political and reputational considerations

Regulatory and reputational questions sometimes surface around high‑profile listings, especially for companies with international ties or complex ownership structures. Around the Webull listing, reporting touched on investor questions regarding regulatory oversight and any cross‑border relationships tied to the company or investors.

As of April 2025, according to Bloomberg reporting, some market participants and commentators raised questions about disclosures and governance that warranted attention but did not immediately curb trading enthusiasm. Such scrutiny can increase volatility: announcements of investigations or regulatory reviews tend to heighten uncertainty and push bid‑ask spreads wider.

Market participants asking why did webull stock go up should therefore consider not only demand dynamics but also the possibility of regulatory headlines that can abruptly change market sentiment.

Aftermath and short‑/medium‑term performance

Following the April 2025 spike, the typical immediate aftermath unfolded:

Profit‑taking and volatile swings: Short‑term traders who captured part of the move exited positions, producing price pullbacks and expanded intraday ranges.
Re‑rating debates: Equity analysts and commentators examined whether the trading levels were supported by fundamentals. Many cautioned that the early trading prices reflected momentum rather than durable valuation metrics.
Return to more stable trading ranges: Over weeks to months, highly speculative price levels tend to normalize as more supply becomes available (lock‑ups expire, insiders sell, or the market absorbs additional shares) and as fundamentals reassert influence.

Analysts tracking BULL highlighted valuation concerns in company filings and noted that post‑SPAC performance historically varies widely: some companies consolidate and grow, while others see extended declines after initial hype dissipates.

Risks and caveats

When assessing why did webull stock go up, readers should keep these principal risks in mind:

Speculative dynamics: Rapid spikes often reflect momentum rather than durable business improvement. Prices driven by sentiment can reverse quickly.
SPAC‑specific risks: Accounting, forward‑looking projections and transaction structures in SPAC deals can create uncertainty distinct from traditional IPOs.
Low float and illiquidity: Limited tradable shares increase price impact for both buyers and sellers, making execution slippage and volatility major risks.
Regulatory risk: Any regulatory inquiries or oversight changes related to the business model, disclosures, or cross‑border operations can materially affect investor perception and price.

This article does not provide investment advice. It highlights risk categories relevant to interpreting pronounced price moves after SPAC listings and meme‑style rallies.

Data and key metrics

Below are the core data points that informed reporting and analysis of why did webull stock go up. All figures reflect public reporting around the April 2025 listing unless otherwise noted.

Intraday peak and percentage gain: BULL rose several hundred percent on its second trading day, with intraday gains that surpassed typical IPO rally ranges. As of April 2025, market reports described the move as a multi‑hundred percent surge from the prior close.
Approximate market capitalization at peak: At intraday highs, BULL’s market cap briefly reached many times the pro‑forma transaction valuation, reflecting the rapid freemarket repricing on concentrated buy flows.
Reported registered users: Webull public materials cited tens of millions of registered users, with active user metrics emphasized in investor presentations.
Assets under custody / deposits: Disclosures and press reporting noted accelerating customer deposits and rising assets under custody, though absolute AUC figures varied among sources.
Trading volume and turnover: Volume on the surge days far exceeded average SPAC opening activity, indicating a heavy concentration of buying and turnover in a short time window.

As of April 2025, according to Business Insider and Fast Company reporting, these quantifiable indicators helped market participants frame the spike, but they did not fully explain the magnitude of the price move — that required combining the metrics with supply constraints and behavioral drivers.

Interpretations and lessons

A balanced reading of why did webull stock go up points to a convergence of factors rather than a single cause. The most robust explanation combines:

Structural supply constraints from SPAC mechanics and sponsor/anchor holdings that left a thin tradable float.
Intense retail demand amplified by social platforms and mainstream media coverage.
Microstructure and derivatives effects (options gamma hedging, short covering) that multiplied buying pressure in a low‑liquidity environment.
Company metrics that provided a growth narrative, which retail traders used to justify momentum bets.

Lessons for investors and observers:

Check float, lock‑ups and PIPE/sponsor holdings before interpreting early trading price moves.
Watch options activity and intraday volume as leading indicators of microstructure‑driven amplification.
Treat dramatic early trading moves as high‑volatility events rather than immediate validation of long‑term valuation.

For traders who follow new listings, exchanges and wallets with robust liquidity and risk‑management features can help manage execution and custody needs. Bitget offers tools and infrastructure to support trading and wallet management for users seeking access to liquid markets.

References

As of April 2025, according to CNBC reporting (April 2025) — contemporaneous coverage described the multi‑hundred percent surge and provided intraday trade color. Source: CNBC (reported April 2025).
As of April 2025, according to Bloomberg (April 2025) — analysis of SPAC mechanics, sponsor participation and float dynamics was discussed in Bloomberg’s reporting on the listing.
As of April 2025, according to Business Insider (April 2025) — Business Insider covered retail interest and social media amplification around the trade.
As of April 2025, according to Fast Company (April 2025) — reporting addressed the product narrative and user growth that featured in investor conversations.
As of April 2025, Webull press releases and transactional disclosures (April 2025) — company filings and press statements provided user counts, AUC commentary and details on the SPAC deal terms and sponsor arrangements.

(Reporting dates above reflect contemporaneous coverage in April 2025 that informed the timeline and metrics summarized here.)

Further exploration and next steps

If you want to monitor new listings and manage exposure to high‑volatility events, review float and lock‑up tables in deal documents, track options and volume in near‑real time, and consider custody and execution tools that support quick, low‑friction trades. Explore Bitget for exchange services and Bitget Wallet for custody and asset management — both can help you study market dynamics and test strategies using robust tools.

More practical guides on SPACs, retail trading dynamics and options market mechanics are available in the See also section above.

Note: This article is informational. It does not provide investment advice. All factual statements reference contemporaneous reporting and company disclosures from April 2025 as noted.

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