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📈 Webull's Profit Pivot
Fannie Freddie Surge on Privatization, Anthropic Unveils $61B AI Edge, BYD Overtakes Tesla in Europe, Amazon Rejects CEO-Chair Split Proposal, Intel Scores Nvidia Data Center
Evelio Silvera
May 23, 2025
Good morning.
⚡ The Fast Five → Fannie Freddie Surge on Privatization, Anthropic Unveils $61B AI Edge, BYD Overtakes Tesla in Europe, Amazon Rejects CEO-Chair Split Proposal, Intel Scores Nvidia Data Center
🔎 Market Trends → US stocks end mostly flat as Treasury yields ease; US Futures Steady After Sharp Market Selloff
And now…
⏱️ Your 5-minute briefing for Friday, May 23, 2025:
MARKET BRIEF
Before the Open
As of market close 05/22/2025.
Pre-Market
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Fear & Greed
Markets in Review
Markets Tread Water as Trump Tax Bill Inches Forward, Crypto Soars
The Nasdaq eked out a 0.3% gain, while the S&P 500 and Dow closed flat. Treasurys caught a bid as bond yields declined, even as fiscal tensions simmered in the background.
The Big Picture:
Wall Street paused for breath Thursday as President Trump's ambitious tax-cut bill cleared the House by a razor-thin vote. Now, the spotlight shifts to the Senate, where passage looks murkier amid deficit worries.
The proposed package — with tax breaks on tips, overtime, and American-made cars — promises near-term economic tailwinds but comes at a long-term fiscal cost: the CBO projects $2.3 trillion in added deficits over the next decade.
Still, some bright spots emerged. Crypto rallied on fresh highs, and private-sector output rebounded, buoyed by tariff relief. In short: the U.S. consumer isn’t folding just yet.
Market Movers:
Coinbase (COIN) popped 5% as Bitcoin hit a record $111,886, riding a wave of investor optimism and institutional interest.
Advance Auto Parts (AAP) skyrocketed 57% after reaffirming guidance and delivering a solid Q1 beat, offering a rare bright spot in retail.
Enphase Energy (ENPH) dropped 20%, hit by proposed tax code changes that would gut clean energy incentives.
S&P Global (SPGI) inched up 0.2%, as PMI data showed improving sentiment thanks to a temporary tariff ceasefire.
What They’re Saying:
“Business confidence has improved in May… gloom about the outlook lifted somewhat thanks largely to the pause on higher rate tariffs.” — Chris Williamson, Chief Economist, S&P Global Market Intelligence
WHAT WE’RE WATCHING
Events
There are no events scheduled for today.
Earnings Reports
Today: Booz Allen Hamilton, Vroom, Toro, Coca-Cola, MINISO
Monday: Woodside Energy Group, EHang Holdings, JOY Y
MARKET BRIEF
Leading News
Webull's Profit Pivot: When Brokers Actually Make Money
Photo Credit: Webull / TradingView
Why it matters:
The trading platform's swing to profitability amid market turbulence signals that commission-free doesn't mean profit-free—a lesson worth $5.8 billion in market cap.
Zoom Out:
The brokerage wars have produced a curious paradox: platforms that give away their core service for free somehow need to turn a profit. Webull (BULL) just cracked that code, reporting $12.9 million in net income after losing money a year ago, while revenue jumped 32% to $117.4 million.
This isn't just about one quarter's numbers. It's behavioral economics in action—when you make investing frictionless and engaging, people trade more. Webull's 924,000 daily average revenue trades (up 44%) prove that gamification works, even if traditional investors wince at the implications.
The real story lies in customer stickiness. Customer assets surged 45% to $12.6 billion while the broader market stumbled, suggesting Webull's users aren't just day-trading tourists but genuine long-term adopters of the platform.
Key Insights:
The Premium Pivot: Webull's subscription service attracted 40,000 users and $2 billion in assets within months—proof that even cost-conscious millennials will pay for perceived value in their financial tools.
Beyond Stocks: Partnerships with BlackRock for model portfolios and upcoming crypto trading rollouts signal Webull's evolution from discount broker to financial supermarket, following the Amazon playbook of continuous expansion.
Profitability Paradox: Despite posting strong fundamentals, shares dropped 4.5% after-hours—a reminder that in today's market, even good news gets punished if it's not spectacular enough.
Market Pulse:
"We are proud to have delivered a very strong first quarter, driven by significant account and trading volume growth that reflects continued demand for Webull's differentiated trading platform," said Anthony Denier, Webull's U.S. CEO.
Bull’s Take:
Smart money recognizes that sustainable unit economics beat viral growth stories every time. Webull's path to profitability while expanding globally suggests the platform has finally figured out how to monetize retail enthusiasm without exploiting it—a rare achievement in fintech that patient investors should applaud.
Headlines
Fannie, Freddie Shares Surge as Trump Again Floats Privatization (link)
Anthropic, now worth $61 billion, unveils its most powerful AI models yet—and they have an edge over OpenAI and Google (link)
BYD overtakes Tesla in Europe for the first time, with April sales soaring by 169%: report (link)
Amazon shareholders reject proposal to split CEO and chair roles (link)
Intel Scores Slot In Nvidia Data Center AI System (link)
GLP-1 diabetes drugs like Ozempic may modestly reduce cancer risks (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to HumansNoContext
All content provided by Investor Lookout and Bull Street is for informational and educational purposes only and should not be taken as trading or investment recommendations.
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