Rumble (US:RUM) Finboldยท2024-12-24 17:01Core 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].