Core Viewpoint - Rumble is experiencing a significant stock surge following a $775 million investment from Tether, but concerns about the sustainability of this momentum and the company's fundamentals remain prevalent [2][4][5]. Investment Details - Tether will invest $775 million in Rumble by purchasing 103 million shares at $7.50 per share [3]. - Rumble plans to allocate $250 million of the proceeds for growth initiatives, while the remaining funds will be used for a stock buyback at the same price [3][8]. Stock Performance - Following the investment announcement, Rumble's stock price increased by 103% over the past month, with a peak increase of 17.2% during a single trading session [4][1]. - As of noon ET on a recent Tuesday, Rumble's stock was up 3.7% [1]. Financial Health - Rumble reported a net loss of $31.5 million in the third quarter and had $132 million in cash and short-term equivalents at the end of that period [7]. - The additional $250 million from the investment will extend Rumble's operational funding by approximately two years based on its current cash-burn rate [7]. Market Sentiment - The investment has reignited meme stock momentum for Rumble, with potential for further price increases if investor sentiment remains strong [5]. - However, the company's weak engagement and monetization metrics raise skepticism about the long-term viability of the stock's recent performance [6].

Core Viewpoint - Tether's $775 million investment in Rumble significantly enhances the company's financial position and growth prospects, despite ongoing concerns regarding its valuation and revenue performance [3][4][15]. Financial Impact - The investment will generate gross proceeds of $775 million, strengthening Rumble's financial position, which already has more cash than debt [7]. - Rumble's revenue for Q3 2024 reached $25.06 million, marking a 39.34% year-over-year increase, while total revenue over the past 12 months climbed to $85.65 million, up 6.36% compared to the prior year [3][14]. - The stock price surged over 100% on December 23, reaching $14.30, and has seen a year-to-date increase of 206% [11][16]. User Metrics - Rumble's global monthly active users (MAUs) increased to an average of 67 million in Q3 2024, up from 53 million in Q2 2024 [9]. - The average revenue per user (ARPU) decreased to $0.33 in Q3 from $0.37 in the previous quarter, indicating potential for improved monetization [9]. Analyst Perspectives - Analysts have revised their outlook on Rumble, with Wedbush raising the price target from $8 to $10 while maintaining a neutral stance [10]. - Oppenheimer's analyst noted that while the investment alleviates liquidity concerns, Rumble's valuation appears ahead of its current advertising and subscription revenue performance [15]. Strategic Plans - Rumble plans to allocate $250 million of the investment to growth initiatives aimed at enhancing platform engagement and monetization, while $525 million will finance a self-tender offer to repurchase up to 70 million shares of Class A Common Stock at $7.50 per share [16].

Core Viewpoint - Rumble Inc. has experienced a significant stock price surge of 81% following Tether's announcement of a $775 million investment, which includes a self-tender offer and funds for growth initiatives [1][2]. Financial Performance - Rumble's revenue has increased nine-fold from $9.5 million in 2021 to $86 million in the last twelve months [3]. - The company reported an operating loss of $143 million on sales of $86 million for the last twelve months, indicating ongoing financial challenges [3]. - Rumble's SG&A expenses are high at 65% of revenue, which further impacts profitability [3]. User Engagement and Growth Potential - Monthly active users (MAUs) peaked at 80 million by the end of 2022 but fell to 44 million in Q2'23 before rising to 67 million currently [3]. - The average revenue per user (ARPU) stands at $0.33, highlighting the need for improvement in user engagement and monetization strategies [3][2]. - The proposed $250 million investment in growth initiatives aims to enhance user acquisition and improve ARPU, potentially reducing losses [2]. Competitive Landscape - Rumble faces intense competition from other video-sharing platforms such as BitChute, Odysee, and YouTube, making it challenging to retain users and attract high-profile content creators [5]. Stock Valuation - Following the recent stock price increase, Rumble's stock is trading at 31 times trailing revenues, which is considered high [6]. - The average revenue growth rate is estimated to be in the high teens over the next few years, with forward sales trading at 23 times expected 2025 revenues of around $113 million [6].

U.S. stocks traded mixed toward the end of trading, with the S&P 500 gaining around 0.5% on Monday.The Dow traded down 0.06% to 42,815.78 while the NASDAQ climbed 0.90% to 19,748.00. The S&P 500 also rose, gaining, 0.54% to 5,962.84.Check This Out: Jim Cramer Likes Walmart, Recommends Buying This ‘Very, Very Good’ Financial StockLeading and Lagging SectorsCommunication services shares jumped by 0.9% on Monday.In trading on Friday, consumer staples shares fell by 1.2%.Top HeadlineU.S. building permits gained ...

After the market closed on Friday, technology company Rumble (RUM 86.80%) announced that Tether (CRYPTO: USDT) will invest $775 million. Considering Rumble was valued at around $2 billion when the investment was announced, the investment is massive. And that's why Rumble stock was up a stunning 66% as of 10:15 a.m. ET.Rumble is losing money and appreciates Tether's helpHow Tether has that much money lying around is another subject for another day. But when it comes to Rumble, investors are responding favora ...

Core Viewpoint - Rumble has entered into a definitive agreement for a strategic investment of $775 million from Tether, aimed at enhancing its growth initiatives and providing liquidity to stockholders through a self tender offer [5][18]. Transaction Details - Tether will purchase 103,333,333 shares of Rumble Class A Common Stock at a price of $7.50 per share, totaling $775 million in gross proceeds [8]. - The investment and tender offer are expected to close in the first quarter of 2025 [10]. - The completion of the investment is subject to customary closing conditions, including regulatory approvals [9]. Use of Proceeds - Rumble will allocate $250 million of the proceeds to support growth initiatives, while the remaining funds will be used for a self tender offer for up to 70 million shares of its Class A Common Stock at the same price as Tether's investment [18][19]. Governance and Control - Following the transaction, Rumble's existing Board and governance structure will remain unchanged, with Chris Pavlovski retaining his controlling stake in the company [20]. Strategic Alignment - The collaboration between Rumble and Tether reflects shared values of decentralization, independence, and transparency, positioning Rumble as a credible alternative to legacy media [19].

Core Viewpoint - Rumble's stock is experiencing significant sell-offs due to macroeconomic risks and shaky business fundamentals, with a notable decline in share price [1][2][4] Group 1: Interest Rate Impact - Rumble's stock decline follows the Federal Reserve's recent interest rate news, including a 25-basis-point cut that was anticipated by investors [2][3] - The Federal Reserve's cautious outlook on future rate cuts, indicating only two additional cuts of 25 basis points next year, has negatively impacted the market, particularly affecting growth-dependent companies like Rumble [4] Group 2: Financial Performance - In its third-quarter report, Rumble reported revenue of $25.1 million, reflecting a 39% year-over-year increase and a 12% sequential quarterly increase [5] - The company posted a net loss of $31.5 million, which is an increase from a loss of $29 million in the same quarter last year [5] Group 3: User Engagement and Monetization - Rumble's engagement and monetization metrics are underwhelming, with only 67 million average monthly active users and a decrease in average revenue per user to $0.33 from $0.37 in the previous quarter [6] - There is a significant risk that user engagement momentum may weaken following the conclusion of the U.S. election season, which could further impact the company's growth [6]

LONGBOAT KEY, FL and NEW YORK, NY, Dec. 02, 2024 (GLOBE NEWSWIRE) -- Rumble (NASDAQ: RUM), the high-growth video platform and cloud services provider, today announced that the much-anticipated fourth season of “Surviving Barstool” will move to Rumble, unedited and uncensored, beginning Monday, December 2, 2024. Rumble users and Barstool fans can subscribe to the Barstool Sports Rumble channel here and tune in to watch this season here. YouTube will only carry the censored version of Surviving Barstool. “Sur ...

LONGBOAT KEY, FL and NEW YORK, NY, Dec. 02, 2024 (GLOBE NEWSWIRE) -- Rumble (NASDAQ: RUM), the high-growth video platform and cloud services provider, today announced that the much-anticipated fourth season of “Surviving Barstool” will move to Rumble, unedited and uncensored, beginning Monday, December 2, 2024. Rumble users and Barstool fans can subscribe to the Barstool Sports Rumble channel here and tune in to watch this season here. YouTube will only carry the censored version of Surviving Barstool. “Sur ...

LONGBOAT KEY, Fla., Nov. 27, 2024 (GLOBE NEWSWIRE) -- Rumble (NASDAQ:RUM), the video-sharing platform and cloud services provider, today sued the California Attorney General and Secretary of State over a recently passed law that unconstitutionally punishes certain political speech. Rumble is represented by Alliance Defending Freedom (ADF), a non-profit law firm that defends the right to speak freely and which also represents the satirical website “The Babylon Bee” in a related lawsuit. The suit was filed in ...