Why Rumble Stock Is Plummeting This Week

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]