Biotech2k
Biotech Investor, AI-Driven Drug Discovery
Webull's historical ties to China make it one to avoid; per another investor's post, its Cayman Islands-incorporated parent has faced scrutiny over those ties. x.comÂ
Webull is a pass despite being a decent brokerage at a fairly decent valuation, because its leadership is mediocre. x.comÂ
Webull looks too cheap and Robinhood too expensive. Webull's Q2 revenue rose 51%, options volume 68%, equity volume 73% and operating profit 169%, with a 31% operating margin and AUM up 79%. It trades at 4.6x 2026 and 3.7x 2027 EV/revenue, versus 18.8x and 14.8x for Robinhood, which is a much bigger, better company but has only 6.5x more revenue with 26x the enterprise value. On 2027 non-GAAP EPS estimates, Webull trades at 25x versus 31x for Robinhood. x.com x.comÂ
Webull's ties to China are a liability, as warned earlier. Per a quoted post, the stock fell nearly 30% after a House panel flagged those ties as a national security risk and raised concerns about US investor data. x.comÂ
Webull faces a national-security overhang from its China ties. Per CNBC, citing House congressional panel findings, Webull's China ties are a national security risk, and the stock dropped 10%. The core problem is that Webull controls $25B of customer assets and allegedly routes retail data through a mainland development team. The CEO has sold 200k shares since late August, and other insiders have also been selling. x.com x.comÂ
Webull looks cheap against its sales at $9.48. It trades at 3x sales, while software companies usually get 9x. Applying 9x to next year's sales, give or take 12%, gives a fair range of $18.01 to $22.92, leaving the stock 47% under the low end. This is a levels-only read off reported earnings and revenue estimates, with no fundamental work. x.comÂ
Webull faces a serious blow from the news of a China national security risk tied to it. x.com x.comÂ
Robinhood's Q3 report still looks solid despite misses against tough year-ago peak crypto and equity comps. Revenue missed slightly; the EPS miss looks tied to $67M of unrealized mark-to-market losses primarily related to its RVI fund, explaining the drawdown. Its new banking feature looks frictionless: send cash by text without recipients needing Robinhood accounts, a nice Zelle alternative versus its partner bank. Robinhood is cyclical, unlike compounding SoFi, though both are great. x.com … Show more
Webull looks bullish into its August 19 earnings, with whales positioned for good results. Its AI push turns the platform into an active decision partner that researches securities, analyzes portfolios and gives personalized real-time guidance. Q1 equity volume more than doubled to $261B, and customer assets rose 90% to $24B on 91% net-deposit growth. Technically it sits on its 20/50 EMA and volume shelf, with a strong chance to retest the 200 EMA and more. x.comÂ
Robinhood's growing non-crypto businesses make its trading-app valuation look too low. Gold subscribers rose 34% to 5.2 million, platform assets reached $396 billion, and 14 business lines now each generate over $100 million annually. Overweight with a $115 target, despite a weak report: deposits fell to $15.7 billion from $22 billion and net interest income dropped 9% as rates declined. x.com x.comÂ