The more consequential news for shareholders is the launch of Rumble’s cloud services. According to Fortune Business Insights, the infrastucture-as-a-service market (which Rumble Cloud competes in) could be worth $500 billion by 2030. Just a piece of the pie would be meaningful for the company. Rumble stock already looked like https://forex-review.net/ it would have a good day on the news of its cloud product. But CEO Chris Pavlovski took to social media this morning, sharing the company’s desire to acquire TikTok from ByteDance. For context, Congress is considering banning the popular app unless ByteDance divests it, giving the opportunity to a buyer such as Rumble.
Now 21% undervalued after recent price drop
The company operates rumble.com, a platform that enables video creators to host, livestream, manage, distribute, and create OTT feeds, as well as monetize their content. It also operates locals.com, a subscription-based video sharing platform. The company was founded in 2013 and is based in Longboat Key, Florida. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. Building competitive platforms in the video and cloud spaces is an expensive journey that won’t be quick. Look for management to provide more details about its cloud services when it reports financial results for the fourth quarter of 2023 on March 27.
- But it’s possible to be an ardent advocate of free speech and still approach this stock with caution.
- Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
- Currently, 19.1% of the shares of the company are short sold.
- For context, Congress is considering banning the popular app unless ByteDance divests it, giving the opportunity to a buyer such as Rumble.
- But this surge was probably helped by the U.S. election cycle and the stay-at-home boom during the COVID-19 pandemic.
RUM price to book (PB)
The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Rumble’s stock was trading at $4.49 at the beginning of 2024. Since then, RUM stock has increased by 45.4% and is now trading at $6.53.
New major risk – Revenue and earnings growth
What matters for RUM stock is that Rumble has offered to serve as a cloud technology partner to TikTok. This kind of partnership would potentially expand the firm’s credibility. After all, while Rumble has a strong niche market — commanding around 58 million average global https://forexbroker-listing.com/oanda/ monthly active users (MAUs) — it’s nothing like TikTok. The short-form app announced 1 billion MAUs globally back in September 2021. 1 analysts have issued twelve-month price objectives for Rumble’s stock. Their RUM share price targets range from $12.00 to $12.00.
Chief Financial Officer notifies of intention to sell stock
However, it desires to be an alternative to public cloud companies as well. This is why the market was excited when Rumble announced yesterday afternoon that its cloud computing service is now open to the public. Although circumstances might look bad for TikTok users and positive for RUM stock, it may be a long road before Americans are denied access to the short-form social media platform. Even in a scenario where the bill passes the Senate and is signed into law, the legislation will likely be taken to court immediately. With an impressive $295.6 million in cash and equivalents on its balance sheet, Rumble can sustain its operations for a long time without relying on equity dilution or debt.
It prevents insiders and early investors from hyping up the stock to retail investors early before dumping their positions. While Rumble’s future growth remains uncertain, its losses are not. In the past, insiders at some other companies sold broker liteforex their shares when their lock-up periods expired. Therefore, with Rumble stock, it’s likely that investors sold Monday out of fear that Rumble insiders could sell their shares, not because those insiders necessarily are selling shares.
It’s also worth noting that former President Donald Trump believes banning TikTok would give more power to Meta Platforms. And Meta is one of the platforms Rumble is trying to provide an alternative to, which underscores why it might want to acquire TikTok and keep the platform active. Rumble offers a best-in-class, all-in-one live-streaming product to all creators, and for all platforms. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Rumble’s stock is owned by a number of retail and institutional investors.
