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Here's what's happening with Rumble (RUM) stock this week
RUMRumble (RUM) Finbold·2024-12-24 17:01

Core Viewpoint - Tether's 775millioninvestmentinRumblesignificantlyenhancesthecompany′sfinancialpositionandgrowthprospects,despiteongoingconcernsregardingitsvaluationandrevenueperformance[3][4][15].FinancialImpact−Theinvestmentwillgenerategrossproceedsof775 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 25.06million,markinga39.3425.06 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,andhasseenayear−to−dateincreaseof20614.30, 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 0.37inthepreviousquarter,indicatingpotentialforimprovedmonetization[9].AnalystPerspectives−AnalystshaverevisedtheiroutlookonRumble,withWedbushraisingthepricetargetfrom0.37 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 10whilemaintaininganeutralstance[10].−Oppenheimer′sanalystnotedthatwhiletheinvestmentalleviatesliquidityconcerns,Rumble′svaluationappearsaheadofitscurrentadvertisingandsubscriptionrevenueperformance[15].StrategicPlans−Rumbleplanstoallocate10 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 525millionwillfinanceaself−tenderoffertorepurchaseupto70millionsharesofClassACommonStockat525 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].