Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. However, the main catalyst for RUM stock likely centers on the political front. Earlier today, the House of Representatives passed the bill. On Sept. 5, Rumble issued a press release reassuring investors that Pavlovksi doesn’t intend to sell any of his shares. And I’m not saying that Rumble stock fell on Monday because Pavlovski is breaking his promise.
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However, it desires to be an alternative to public cloud companies as well. This is why the market was excited when Rumble announced yesterday afternoon that its cloud computing service is now open to the public. Although circumstances might look bad for TikTok users and positive for RUM stock, it may be a long road before Americans are denied access to the short-form social media platform. Even in a scenario where the bill passes the Senate and is signed into law, the legislation will likely be taken to court immediately. With an impressive $295.6 million in cash and equivalents on its balance sheet, Rumble can sustain its operations for a long time without relying on equity dilution or debt.
Consensus EPS estimates fall by 51%, revenue upgraded
On the contrary, investors have no idea what he did either way. Shares of video-streaming platform Rumble (RUM -0.15%) dropped on Monday following the expiration of its lock-up period over the weekend. At the close of the session, Rumble stock was down by about 12.7%. The 1 analyst with a 12-month price forecast for Rumble stock has a target of 12, which predicts an increase of 83.77% from the current stock price of 6.53. Moreover, Rumble stock was down about 26% last week on an independent report that questioned the business. With that big of a recent drop, part of this week’s gain was simply a bounce-back after the market had a weekend to digest the news.
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Despite its near-term challenges, Rumble’s future looks bright. The exceptional MAU growth it experienced in 2020 and 2021 indicates strong demand for its niche. And most importantly, these users stuck around even after the impetus for their joining (COVID-19 and the elections) ended. This suggests that intense news cycles in the future (such as the next U.S. election) could drive sustainable growth for the platform. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rumble wasn’t one of them.
Rumble: Short Term Growth That’s Unlikely To Last
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What matters for RUM stock is that Rumble has offered to serve as a cloud technology partner to TikTok. This kind of partnership would potentially expand the firm’s credibility. After all, while Rumble has a strong niche market — commanding around 58 million average global monthly active users (MAUs) — it’s nothing like TikTok. The short-form app announced 1 billion MAUs globally back in September 2021. 1 analysts have issued twelve-month price objectives for Rumble’s stock. Their RUM share price targets range from $12.00 to $12.00.
- Even in a scenario where the bill passes the Senate and is signed into law, the legislation will likely be taken to court immediately.
- Rumble’s stock was trading at $4.49 at the beginning of 2024.
- That said, Rumble’s losses are huge, and it currently has no clear pathway to profitability.
Investors are worried that a wave of shares could flood the market. That said, Rumble’s losses are huge, and it currently has no clear pathway to profitability. Risk-averse investors should wait for more quarters (or even years) of data before considering a position in the stock. Investors are still trying https://forexbroker-listing.com/ to figure out what this growth opportunity is worth. “It is no surprise that the Chinese stock market is crashing after Trump’s massive primary win in Iowa,” Donald Trump Jr. told On The Money. The company is scheduled to release its next quarterly earnings announcement on Tuesday, May 14th 2024.
Rumble shares RUM, +18.26% rose 18.3% to $7.90 on Tuesday following its expression of interest in taking over TikTok. You have already added five stocks to your watchlist. Upgrade to MarketBeat All Access to add more stocks to your watchlist.
It’s also worth noting that former President Donald Trump believes banning TikTok would give more power to Meta Platforms. And Meta is one of the platforms Rumble is trying to provide an alternative to, which underscores why it might want to acquire TikTok and keep the platform active. Rumble offers a best-in-class, all-in-one live-streaming product to all creators, and for all platforms. A former coinmama exchange review senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Rumble’s stock is owned by a number of retail and institutional investors.
Insiders that own company stock include Brandon Alexandroff, Claudio Ramolo, David O Sacks, Robert Arsov and Wojciech Hlibowicki. Therefore, Monday was the first day of trading since the lock-up expired. Pavlovski’s massive quantity of shares can now be sold, at least in theory.
Shares of streaming video platform Rumble (RUM -0.15%) popped on Tuesday on a pair of head-turning headlines. First, the company just launched a highly anticipated new product, and it’s looking to acquire TikTok as well. This is why Rumble stock was up about 14% as of noon ET. In the 12 months between the third quarter of 2020 and 2021, the platform’s average monthly active users (MAUs) skyrocketed by over 2,100% to 36 million. But this surge was probably helped by the U.S. election cycle and the stay-at-home boom during the COVID-19 pandemic. Rumble prides itself on being a censorship-free alternative to platforms such as YouTube.
The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Rumble’s stock was trading at $4.49 at the beginning of 2024. Since then, RUM stock has increased by 45.4% and is now trading at $6.53.
The more consequential news for shareholders is the launch of Rumble’s cloud services. According to Fortune Business Insights, the infrastucture-as-a-service market (which Rumble Cloud competes in) could be worth $500 billion by 2030. Just a piece of the pie would be meaningful for the company. Rumble stock already looked like it would have a good day on the news of its cloud product. But CEO Chris Pavlovski took to social media this morning, sharing the company’s desire to acquire TikTok from ByteDance. For context, Congress is considering banning the popular app unless ByteDance divests it, giving the opportunity to a buyer such as Rumble.
The company operates rumble.com, a platform that enables video creators to host, livestream, manage, distribute, and create OTT feeds, as well as monetize their content. It also operates locals.com, a subscription-based video sharing platform. The company was founded in 2013 and is based in Longboat Key, Florida. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. Building competitive platforms in the video and cloud spaces is an expensive journey that won’t be quick. Look for management to provide more details about its cloud services when it reports financial results for the fourth quarter of 2023 on March 27.
It prevents insiders and early investors from hyping up the stock to retail investors early before dumping their positions. While Rumble’s future growth remains uncertain, its losses are not. In the past, insiders at some other companies sold their shares when their lock-up periods expired. Therefore, with Rumble stock, it’s likely that investors sold Monday out of fear that Rumble insiders could sell their shares, not because those insiders necessarily are selling shares.
Rumble saw a drop in short interest during the month of April. As of April 15th, there was short interest totaling 12,500,000 shares, a drop of 14.3% from the March 31st total of 14,580,000 shares. Based on an average daily volume of 6,220,000 shares, the days-to-cover ratio is currently 2.0 days. Currently, 19.1% of the shares of the company are short sold. The average analyst rating for Rumble stock from 2 stock analysts is “Buy”.
The company’s revenue soared year over year due to improved monetization and growth in how many hours of video were streamed by users. With shares down 70% from an all-time high of $16.81, Rumble (RUM -0.15%) stock has been https://forex-reviews.org/alvexo/ challenging for its early investors. But behind the poor performance lies a business with rapid growth and a unique niche in the video-streaming industry. Will management be able to turn the ship around over the long term?