Rumble Stock Rockets on $775M Tether Investment

Online video platform Rumble (RUM) saw its stock rocket higher on Monday after the company received a new $775 million investment from Tether (USDT), the company behind the stablecoin of the same name. Tether has agreed to purchase 103.3 million shares of RUM stock for $7.50 each. For the record, RUM stock closed Friday at $7.19 per share.

Rumble already has plans for the money generated by the Tether investment. The video-sharing platform intends to use $250 million of it to support growth initiatives. The remainder of the funds will go toward a self-tender offer that could include up to 70 million shares of its common stock.

Rumble stock has experienced strong growth this year alongside the U.S. 2024 presidential elections. The company is favored by conservative users and describes itself as “technologies that are immune to cancel culture.”

How This Affects RUM Stock Today

News of the $775 million investment in Rumble has investors excited today. This has RUM shares heading 70.65% higher as of this writing. Investors will note that RUM stock is also up 126.06% year-to-date.

News of the Tether investment also puts extra attention on RUM stock today, which brings with it heavy trading of the shares. That has more than 14.46 million units changing hands as of this writing. To put that in perspective, the company’s three-month daily average trading volume is only a fraction of that at 2.42 million shares.

Is RUM Stock a Buy, Sell, or Hold?

Turning to Wall Street, there isn’t enough analyst data for a consensus rating or average price target for Rumble. Looking at the company’s last eight quarters, its earnings performance is mixed as it only beat EPS estimates in four of those periods. The same is also true of the company’s revenue over the previous eight quarters with four misses and four beats.

See more RUM earnings data