Rumble Inc

Rumble Inc. (NASDAQ: RUM) is a video sharing platform and cloud services provider. The Company comprises two segments: Rumble Services and Rumble Cloud. Rumble Services consists of three core businesses: Rumble Video, Rumble Studio, and Rumble Advertising Center (RAC).

Recent Business and Financial Updates

• Rumble Schedules Q3 2024 Earnings Release and Post-Earnings Interview: Rumble Inc. (NASDAQ: RUM), a prominent video-sharing and cloud services company, announced it will release its financial results for the third quarter ending September 30, 2024, after market close on November 12, 2024. A conference call will follow at 5:00 p.m. ET, accessible via webcast on Rumble's Investor Relations website. Additionally, CEO Chris Pavlovski will join Matt Kohrs for a post-earnings live interview streamed on the Matt Kohrs Rumble channel. The discussion will cover Rumble’s recent achievements and business strategies, with viewers invited to submit questions in real-time.
• Rumble’s Q2 2024 Financial Performance Overview: Rumble Inc., a leading video-sharing and cloud services provider, released its second quarter 2024 financial results, reporting a revenue of USD 22.5 million—a 27% sequential increase from Q1, though slightly lower than Q2 2023. This increase in revenue reflects Rumble's efforts to grow its Average Revenue Per User (ARPU), a new metric aimed at aligning with its monetization objectives. The ARPU for Q2 2024 was USD 0.37, up 19% over the prior quarter, driven primarily by a rise in sponsorship revenues. The company has since phased out certain metrics, such as Minutes Watched Per Month, as it emphasizes ARPU as a primary performance indicator.
• User Metrics and Engagement Milestones: Rumble reported an average of 53 million global Monthly Active Users (MAUs) for Q2 2024, marking the tenth consecutive quarter of exceeding 40 million MAUs. Notably, Rumble achieved a new record of concurrent viewers during the June 2024 debate between President Joe Biden and former President Donald Trump, hitting a peak of 718,909 live viewers. This boost in MAUs and concurrent viewership was partially attributed to increased interest in political news, reinforcing Rumble’s position as a significant platform for public discourse and news.
• Strategic Product Developments: The company made considerable advancements to its platform, introducing features like watch history and playlists across mobile and TV apps, along with the launch of Rumble Premium on mobile. Rumble Cloud, its proprietary content delivery network, also progressed with a significant partnership with PublicSquare, which plans to migrate its marketplace to the Rumble Cloud. This collaboration signals Rumble’s commitment to supporting independent content creators and businesses.
• Legal Initiatives and Advocacy: During Q2, Rumble continued its legal battle against Google by filing a second antitrust lawsuit on May 13, 2024, challenging Google’s dominance in the online advertising market. This new case, claiming damages exceeding USD 1 billion, is separate from Rumble’s 2021 lawsuit regarding self-preferencing by Google, which remains ongoing. Rumble’s advocacy for fair competition extends to its recent partnership with social media platform X to file additional lawsuits alleging that certain advertising entities conspired to withhold ad revenues from Rumble and similar platforms.
• Operating Expenses and Cost Management: Rumble reported a reduction in the cost of services to USD 35.7 million, down from USD 40.8 million in Q2 2023, primarily due to decreased programming and content costs. General and administrative expenses rose to USD 10.4 million, attributed to higher payroll expenses and public company-related costs. Research and development expenses reached USD 5.3 million, reflecting Rumble’s ongoing investment in platform innovation, while sales and marketing expenses increased significantly to USD 6.3 million due to expanded marketing activities.
• Liquidity Position: As of June 30, 2024, Rumble held USD 154.2 million in cash, cash equivalents, and marketable securities, reflecting a strong liquidity position that supports its ongoing expansion and legal endeavours. This reserve is expected to underpin Rumble’s near-term operational initiatives and strategic growth projects.
• Outlook for 2024 and Beyond: Looking ahead, Rumble expects revenue growth throughout 2024, supported by its robust sponsorship pipeline and anticipated political advertising as the election cycle heats up. The company is focused on disciplined cost management and anticipates reaching Adjusted EBITDA breakeven by 2025, signalling a steady path towards profitability. Rumble’s evolving platform, strategic partnerships, and focus on monetization position it for sustained growth in the coming quarters.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 58.30, upward trending with the price broken above an important resistance of USD 6.00, with expectations of momentum on the upper side. Additionally, the stock's current positioning is between both 50-Day SMA and 200-Day SMA, which can act as a short to medium term support and resistance levels respectively.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Rumble Inc. (NASDAQ: RUM) at the current market price of USD 6.10 as of October 29, 2024, at 07:15 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is October 29, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.s

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.