Buy, Sell, Or Hold RUM Stock At $13?

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].