Rumble (NASDAQ:RUM) Shares Gap Up - Should You Buy?

Key Points

• Rumble shares jumped 15%, opening at $7.67 after previously closing at $7.17 and later trading near $8.28 on heavy volume.
• Analysts remain bearish: Wall Street Zen downgraded the stock to “sell,” Weiss Ratings reiterated a “sell (D-)” rating, and MarketBeat reports a consensus “Sell” rating.
• Rumble’s latest quarterly revenue rose 61% year over year to $40.37 million, beating estimates, but its $0.28 per-share loss was wider than expected and the company continues to report deeply negative margins.

Rumble Inc. (NASDAQ:RUM - Get Free Report)'s share price gapped up prior to trading on Monday . The stock had previously closed at $7.17, but opened at $7.67. Rumble shares last traded at $8.2820, with a volume of 9,744,202 shares traded.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. Wall Street Zen lowered Rumble from a "hold" rating to a "sell" rating in a research report on Saturday, August 15th. Weiss Ratings reissued a "sell (d-)" rating on shares of Rumble in a report on Friday, July 24th. One research analyst has rated the stock with a Sell rating, According to MarketBeat.com, the company presently has a consensus rating of "Sell".

Rumble Stock Up 15.0%

The company has a market cap of $4.09 billion, a P/E ratio of -13.94 and a beta of 1.21. The company's 50-day moving average is $7.20 and its two-hundred day moving average is $6.78. The company has a debt-to-equity ratio of 0.25, a current ratio of 2.12 and a quick ratio of 2.12.

Rumble (NASDAQ:RUM - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.18). Rumble had a negative net margin of 134.60% and a negative return on equity of 22.77%. The business had revenue of $40.37 million during the quarter, compared to the consensus estimate of $31.23 million. During the same period last year, the company posted ($0.12) earnings per share. The business's revenue was up 61.0% compared to the same quarter last year. As a group, equities analysts predict that Rumble Inc. will post -0.55 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. bought a new stake in Rumble in the 4th quarter worth about $47,000. Daiwa Securities Group Inc. lifted its stake in Rumble by 47.8% during the 4th quarter. Daiwa Securities Group Inc. now owns 9,254 shares of the company's stock valued at $58,000 after acquiring an additional 2,993 shares during the period. State of Wyoming purchased a new stake in shares of Rumble during the 1st quarter valued at about $62,000. VestGen Advisors LLC purchased a new stake in shares of Rumble during the 4th quarter valued at about $64,000. Finally, NewEdge Advisors LLC grew its stake in shares of Rumble by 2,905.9% in the fourth quarter. NewEdge Advisors LLC now owns 10,250 shares of the company's stock worth $65,000 after acquiring an additional 9,909 shares during the period. 26.15% of the stock is owned by institutional investors.

About Rumble

Rumble Inc operates a video-sharing and cloud services platform. Its flagship service enables users to upload, watch, and share video content, while providing creators with tools for audience engagement and monetization. The platform serves a broad range of users and content creators, with an emphasis on supporting independent publishers and offering an alternative to larger video-hosting services.

The company also provides digital infrastructure through Rumble Cloud, which offers cloud hosting and related services to businesses and organizations.

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