Rumble (NASDAQ:RUM) Shares Up 13.7% - Still a Buy?

Key Points

• Shares rose 13.7% on Friday to $8.49, with 3.17 million shares traded—about 38% above the average session volume.
• Weak fundamentals: Rumble missed Q results (EPS ($0.13) vs ($0.11) expected), reported $27.07M revenue down 10.3% YoY, a negative net margin of 81.32%, and analysts project roughly -0.32 EPS for the year.
• Market sentiment remains cautious: the stock has an average "Sell" rating despite a reported $767M acquisition pivoting the company toward AI infrastructure and some recent institutional buying; market cap is about $3.62 billion.

Shares of Rumble Inc. (NASDAQ:RUM - Get Free Report) shot up 13.7% during trading on Friday . The stock traded as high as $8.33 and last traded at $8.49. 3,173,616 shares were traded during trading, an increase of 38% from the average session volume of 2,296,993 shares. The stock had previously closed at $7.47.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings upgraded shares of Rumble from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday, April 27th. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the stock has an average rating of "Sell".

Rumble Stock Up 11.3%

The company has a market cap of $3.62 billion, a price-to-earnings ratio of -25.98 and a beta of 1.02. The company's 50-day moving average is $5.71 and its 200 day moving average is $6.15.

Rumble (NASDAQ:RUM - Get Free Report) last released its quarterly earnings results on Thursday, March 5th. The company reported ($0.13) EPS for the quarter, missing the consensus estimate of ($0.11) by ($0.02). Rumble had a negative net margin of 81.32% and a negative return on equity of 39.76%. The firm had revenue of $27.07 million for the quarter, compared to analyst estimates of $27.09 million. During the same quarter in the prior year, the business posted ($1.15) EPS. The firm's quarterly revenue was down 10.3% compared to the same quarter last year. Analysts predict that Rumble Inc. will post -0.32 EPS for the current fiscal year.

Hedge Funds Weigh In On Rumble

Institutional investors and hedge funds have recently bought and sold shares of the business. Neo Ivy Capital Management acquired a new position in Rumble during the third quarter worth about $1,563,000. Monaco Asset Management SAM purchased a new position in Rumble during the third quarter worth about $724,000. Vanguard Group Inc. raised its stake in Rumble by 1.4% during the third quarter. Vanguard Group Inc. now owns 8,934,542 shares of the company's stock worth $64,686,000 after purchasing an additional 122,788 shares during the period. Arete Wealth Advisors LLC purchased a new position in Rumble during the third quarter worth about $136,000. Finally, Rhumbline Advisers raised its stake in Rumble by 15.5% during the third quarter. Rhumbline Advisers now owns 133,839 shares of the company's stock worth $969,000 after purchasing an additional 17,923 shares during the period. 26.15% of the stock is currently owned by institutional investors and hedge funds.

About Rumble

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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