Rumble (NASDAQ:RUM) Shares Up 11.8% - Here's Why

Key Points

• Rumble shares rose 11.8% to about $5.71, on trading volume 29% below its average.
• Third-quarter revenue surged 289.5% year over year and beat estimates, but Rumble’s $0.19-per-share loss was worse than expected and wider than a year earlier.
• Quake AI plans to deploy NVIDIA’s Minerva platform to improve AI-factory operations. Analyst sentiment remains cautious, with MarketBeat reporting a consensus “Sell” rating.

Rumble Inc. (NASDAQ:RUM - Get Free Report) shares were up 11.8% on Wednesday. The stock traded as high as $5.76 and last traded at $5.7140. Approximately 2,337,631 shares traded hands during trading, a decline of 29% from the average session volume of 3,295,880 shares. The stock had previously closed at $5.11.

Rumble News Summary

Here's some of the latest news about RUM:

• Positive Sentiment: Rumble said its third-quarter revenue rose 289.5% year over year and beat revenue estimates, indicating rapid business growth. Zacks Q3 results
• Positive Sentiment: Quake AI, Rumble’s AI infrastructure business, plans to deploy NVIDIA’s Minerva platform to help detect infrastructure problems and improve AI-factory performance. The announcement may strengthen Rumble’s AI infrastructure positioning. Quake AI announcement
• Negative Sentiment: Rumble reported a third-quarter loss of $0.19 per share, worse than the $0.11 consensus loss cited in one report. The loss also widened from $0.08 per share a year earlier, raising concerns about profitability despite revenue growth. Earnings report and call

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on RUM. Wall Street Zen downgraded shares of Rumble from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. Lake Street Capital started coverage on shares of Rumble in a research note on Tuesday, October 6th. They issued a "hold" rating and a $25.00 target price on the stock. Zacks Research downgraded shares of Rumble from a "hold" rating to a "strong sell" rating in a research report on Monday, October 12th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Rumble in a research note on Thursday, October 22nd. One research analyst has rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Sell" and an average price target of $25.00.

Rumble Trading Up 15.2%

The company has a market cap of $2.92 billion, a P/E ratio of -9.99 and a beta of 1.35. The company has a quick ratio of 2.12, a current ratio of 2.12 and a debt-to-equity ratio of 0.25. The firm's 50-day moving average price is $6.98 and its 200-day moving average price is $6.67.

Rumble (NASDAQ:RUM - Get Free Report) last released its quarterly earnings data on Wednesday, November 11th. The company reported ($0.19) EPS for the quarter, missing the consensus estimate of ($0.11) by ($0.08). Rumble had a negative return on equity of 22.77% and a negative net margin of 134.60%. During the same quarter in the prior year, the company earned ($0.06) earnings per share. The company's revenue for the quarter was up 289.5% on a year-over-year basis. As a group, equities research analysts expect that Rumble Inc. will post -0.55 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Rumble

Institutional investors have recently made changes to their positions in the stock. Silver Oak Securities Incorporated bought a new position in shares of Rumble in the third quarter worth $341,000. Russell Investments Group Ltd. lifted its holdings in Rumble by 21.8% during the 3rd quarter. Russell Investments Group Ltd. now owns 72,661 shares of the company's stock worth $549,000 after purchasing an additional 12,989 shares in the last quarter. StoneX Group Inc. purchased a new stake in Rumble during the 3rd quarter worth about $78,000. Commonwealth Equity Services LLC purchased a new stake in Rumble during the 3rd quarter worth about $193,000. Finally, ProShare Advisors LLC bought a new position in Rumble in the 3rd quarter worth about $137,000. Hedge funds and other institutional investors own 26.15% of the company's stock.

About Rumble

Rumble Inc. operates a video-sharing platform where users can upload, watch and share videos. The company also offers live-streaming tools and services that help creators publish and monetize content, including through advertising and subscriptions. Founded in 2013 by Chris Pavlovski, Rumble has expanded beyond video distribution into cloud computing. Its Rumble Cloud business provides infrastructure services to organizations seeking alternatives to larger cloud providers. The company serves creators, viewers and business customers in multiple countries, with a substantial presence in North America.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.