Webull Shares Down 5% After PDT Rule Ends, Sees 20% Trade Surge
BULL•Webull’s shares dropped nearly 5% this week following the June 4 elimination of the $25,000 Pattern Day Trader equity requirement. The firm forecasts at least a 20% increase in transaction activity and eyeing SpaceX’s IPO later this month to attract new retail clients.
1. Webull Stock Performance
Webull saw its share price decline nearly 5% this week, posting its worst weekly drop in a month as investor sentiment cooled.
2. Pattern Day Trader Rule Change
On June 4, the $25,000 minimum equity requirement for pattern day trading was eliminated, with brokerages now applying intraday margin rules and risk-based monitoring to manage exposure.
3. Transaction Activity Outlook
Webull’s CEO highlighted that the average account size of just under $5,000 suggests many users were affected by the PDT rule, and the firm anticipates transaction volumes rising at least 20% over time.
4. SpaceX IPO Opportunity
The upcoming SpaceX IPO, expected later this month, presents a significant growth catalyst as brokerages prepare to offer retail investors access, potentially driving new account openings and higher trade activity.
