Rumble (RUM) AI Stock Analysis

• Market Cap: $3.11B
• Dividend Yield: N/A
• Average Volume (3M): 2.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: 17.94%
• EPS Growth: -186.52%
• Country: US
• Employees: 135
• Sector: Technology
• Sector Strength: 44
• Industry: Software - Application
• EPS (TTM): -1.65
• Shares Outstanding: 214,817,100
• 10 Day Avg. Volume: 2,054,981
• 30 Day Avg. Volume: 2,447,827
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 35.20
• Price to Cash Flow (P/CF): -39.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $14.00
• Price Target Upside: 95.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Rumble's overall stock score is driven by substantial financial challenges, including high losses, negative cash flow, and a weak balance sheet. While there is strong revenue and audience growth, supported by strategic investments like the one from Tether, these positives are overshadowed by the company's current financial instability and bearish technical indicators.

Positive Factors

Cash Reserves and Investment

Rumble holds $130.8M in cash with no debt, and Tether's $775M investment is expected to provide sufficient capital for operations and growth.

Financial Performance

Rumble reported 4Q24 results ahead of expectations on both revenue and adjusted EBITDA, amid strong monthly active users and monetization trends.

User Growth and Monetization

Rumble's audience growth is impressive, with monthly active users surging to 67M, driven by platform upgrades and new offerings set to boost monetization.

Negative Factors

Market Perception

The market is underestimating Rumble's potential to monetize its audience and build a sustainable cloud computing business, justifying a premium valuation.

Revenue Guidance

The company introduced 1Q25 revenue guidance of at least 25% year-over-year, below consensus of 41% growth.

Rumble Business Overview & Revenue Model

Company Description

Rumble Inc. operates video sharing platforms. The company operates rumble.com, a platform that enables video creators to host, livestream, manage, distribute, and create OTT feeds, as well as monetize their content. It also operates locals.com, a subscription-based video sharing platform. The company was founded in 2013 and is based in Longboat Key, Florida.

How the Company Makes Money

Rumble makes money primarily through advertising revenue, taking a share of the ad revenue generated from videos on its platform. The company operates an ad-supported model where advertisers can place ads on videos, and revenues are shared with content creators based on views and engagement metrics. Additionally, Rumble offers subscription services for viewers who prefer an ad-free experience, providing another revenue stream. Rumble also engages in partnerships with content creators and media organizations to expand its content offerings, which can enhance user engagement and attract more advertisers. The company's focus on supporting creators with favorable revenue-sharing terms is a significant factor in its earnings strategy.

Rumble Financial Statement Overview

Summary

Rumble faces significant financial challenges with negative profitability and cash flow metrics, alongside a weak balance sheet. While revenue is growing, the company struggles with substantial losses and liquidity issues, posing high financial risk.

Income Statement

Rumble showed significant revenue growth from 2020 to 2024, but profitability metrics such as gross profit margin and net profit margin are deeply negative, indicating substantial operational challenges. EBIT and EBITDA margins are also negative, reflecting high operating losses.

Balance Sheet

The balance sheet reveals a troubling scenario with a negative equity position in 2020, improving slightly but still weak in subsequent years. The debt-to-equity ratio is undefined due to zero equity in the latest year, highlighting potential financial instability.

Cash Flow

Rumble's cash flow performance is poor, with negative free cash flow and operating cash flow in several years. Despite some improvement in operating cash flow over time, the free cash flow remains negative, indicating ongoing liquidity challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
95.49T	80.96M	39.38M	9.47M	4.56M
	Gross Profit
-24.58T	-65.19M	-4.36M	2.27M	1.84M
	EBIT
-10.00T>	-135.55M	-35.65M	-7.58M	-1.20M
	EBITDA
-115.88M	-131.47M	-32.93M	-10.37M	-1.16M
	Net Income Common Stockholders
-338.36M	-116.42M	-11.40M	-13.41M	-1.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
114.02M	219.47M	338.27M	46.85M	1.45M
	Total Assets
195.31M	295.71M	366.98M	55.80M	2.68M
	Total Debt
1.80M	2.61M	1.42M	1.51M	424.99K
	Net Debt
-112.22M	-215.73M	-335.75M	-45.34M	-1.02M
	Total Liabilities
258.43M	44.09M	27.35M	25.43M	3.02M
	Stockholders Equity
-63.12M	251.62M	339.63M	30.37M	-340.94K
Cash Flow		Free Cash Flow
-94.18M	-110.40M	-41.37M	-7.03M	-17.61K
	Operating Cash Flow
-87.01M	-92.91M	-32.33M	-5.19M	51.19K
	Investing Cash Flow
-15.64T	-23.77M	-10.14M	1.58M	-68.81K
	Financing Cash Flow
-1.67M	-2.15M	332.79M	49.01M	-423.52K

Rumble Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RUM, the sentiment is Negative. The current price of 7.16 is below the 20-day moving average (MA) of 7.54, below the 50-day MA of 8.66, and below the 200-day MA of 7.76, indicating a bearish trend. The MACD of -0.38 indicates Negative momentum. The RSI at 41.40 is Neutral, neither overbought nor oversold. The STOCH value of 27.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RUM.

Rumble Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMEO	72 Outperform	$786.34M	30.38	6.70%	―	-0.05%	23.22%
PUBM	68 Neutral	$443.05M	39.35	4.36%	―	9.08%	43.58%
DSP	66 Neutral	$807.77M	376.47	3.87%	―	29.74%	―
GRND	64 Neutral	$4.08B	―	-966.61%	―	32.71%	-131.68%
BMBL	61 Neutral	$460.18M	―	-44.89%	―	1.88%	-11430.00%
Sector *	58 Neutral	$9.82B	10.00	-6.63%	3.09%	7.49%	-11.58%
RUM	35 Underperform	$3.11B	―	-358.99%	―	17.94%	-186.52%

Rumble Corporate Events

Robert Arsov Resigns from Rumble’s Board of Directors

On April 3, 2025, Robert Arsov resigned from the Board of Directors of Rumble Inc., reducing the board size to seven directors. His departure was amicable, and he was granted an extension on his stock options exercise period, reflecting his significant contributions to the company.

Spark’s Take on RUM Stock

According to Spark, TipRanks’ AI Analyst, RUM is a Underperform.

Rumble’s stock score reflects significant financial challenges, including negative profitability and liquidity issues. Despite strong growth and strategic investments, such as the Tether partnership, the high financial risk and negative valuation metrics weigh heavily on the stock’s attractiveness.

To see Spark’s full report on RUM stock, click here.

Rumble Secures $775M Investment from Tether for Growth

On February 7, 2025, Rumble announced the closure of a strategic investment of $775 million from Tether, a prominent company in the digital assets industry. This transaction involves Tether purchasing 103,333,333 shares of Rumble Class A Common Stock, with Rumble utilizing $250 million of these funds to support growth initiatives. The company also completed a tender offer to repurchase 70 million shares of its own stock, amounting to $525 million in total. This investment is expected to enhance Rumble’s market position and support its expansion into cryptocurrency payments, although it carries risks associated with regulatory challenges and market volatility.

Rumble Announces Resignation of General Counsel

On February 3, 2025, Rumble Inc. announced the resignation of Michael Ellis, their General Counsel and Corporate Secretary, effective February 7, 2025. His resignation is amicable, as it is not due to any disagreements with the company’s operations, policies, or practices but rather to pursue a position in government.

Rumble Announces Board Changes with New Appointment

On January 24, 2025, Rumble Inc. appointed Katie Biber as a new independent director on its Board. Biber will serve on the Audit and Nominating and Corporate Governance Committees. Meanwhile, Ethan Fallang resigned from the Board to pursue a government position, with his departure not stemming from any disagreement with the company.