Rumble (NASDAQ:RUM) Stock Price Down 6.4% - Here's Why

Key Points

• Rumble shares fell 6.4% to about $7.85, with trading volume down 82% from the average daily level.
• Analyst sentiment is broadly negative: Wall Street Zen downgraded the stock to “sell,” Weiss Ratings reiterated a “sell (D-)” rating, and MarketBeat reports an average rating of “Sell.”
• Rumble’s latest quarterly revenue rose 61% year over year to $40.37 million and exceeded estimates, but its $0.28 per-share loss was wider than expected; the company reported a negative net margin of 134.6%.

Rumble Inc. (NASDAQ:RUM - Get Free Report)'s stock price fell 6.4% on Wednesday . The stock traded as low as $7.83 and last traded at $7.8490. 532,581 shares traded hands during trading, a decline of 82% from the average daily volume of 2,907,737 shares. The stock had previously closed at $8.39.

Wall Street Analyst Weigh In

RUM has been the subject of several analyst reports. Wall Street Zen lowered shares of Rumble from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. Weiss Ratings reissued a "sell (d-)" rating on shares of Rumble in a research note on Friday, July 24th. One investment analyst has rated the stock with a Sell rating, According to MarketBeat.com, Rumble has an average rating of "Sell".

Rumble Stock Performance

The firm has a market cap of $3.81 billion, a PE ratio of -13.04 and a beta of 1.21. The business has a 50 day simple moving average of $7.13 and a two-hundred day simple moving average of $6.75. The company has a quick ratio of 2.12, a current ratio of 2.12 and a debt-to-equity ratio of 0.25.

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

Hedge Funds Weigh In On Rumble

A number of institutional investors have recently modified their holdings of RUM. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Rumble during the fourth quarter valued at approximately $47,000. Canada Pension Plan Investment Board purchased a new position in Rumble during the 2nd quarter worth $75,000. Daiwa Securities Group Inc. increased its holdings in Rumble by 47.8% during the 4th quarter. Daiwa Securities Group Inc. now owns 9,254 shares of the company's stock worth $58,000 after purchasing an additional 2,993 shares during the period. Russell Investments Group Ltd. bought a new stake in Rumble during the 3rd quarter valued at $72,000. Finally, VestGen Advisors LLC bought a new stake in Rumble during the 4th quarter valued at $64,000. 26.15% of the stock is owned by hedge funds and other institutional investors.

Rumble Company Profile

Rumble Inc operates a video-sharing platform designed to offer creators and audiences an alternative to traditional social media and streaming services. The company's primary business activities include hosting, distributing and monetizing user–generated and professional video content. Through its platform, Rumble enables content creators to retain a higher share of advertising revenue and maintain greater control over their intellectual property, while offering viewers open access to a wide range of videos spanning news, sports, entertainment and educational programming.

In addition to its core video platform, Rumble provides cloud–based video hosting and delivery services via Rumble Cloud, a content–delivery network (CDN) designed to support high–volume streaming and storage.

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