Now that Donald Trump has been officially sworn in as the 47th president of the United States, market participants are waiting with bated breath as he ushers in new policies. Stocks in sectors poised to benefit from the Trump regime, primarily those in finance, oil and natural gas, and crypto, have already been running up as investors expect favorable policy outcomes and tax cuts.
Rumble (RUM), a little-known live-streaming app with a conservative bent, has quietly clocked multi-bagger returns over the past year. Analysts are looking to it as an early winner in 2025 because Trump’s Truth Social migrated to Rumble’s cloud platform. Plus, the company bagged an investment from Vice President JD Vance’s Narya Capital in 2021.
Notably, Maxim Group analyst Tom Forte recently initiated coverage of the stock with a “Buy” rating.
About Rumble Stock
Founded in 2013, Rumble (RUM) is an online video platform and cloud services company focused on providing a platform for small content creators who were being deprioritized on larger social media platforms in favor of influencers, corporations, and large brands. The company’s mission is to “protect a free and open internet” by allowing small creators to express diverse opinions.
Valued at a market capitalization of about $5 billion, Rumble stock has been on a tear over the past year, rallying a whopping 262%.
So, does Rumble have the wherewithal to sustain this rally, or will it tumble as soon as the Trump trade fizzles out? Let’s have a closer look.
Not-So-Weak Financials
The results for the most recent quarter saw Rumble reporting a miss on both revenue and earnings. However, the company reported record quarterly revenue of $25.1 million, which denoted a yearly growth rate of 39%. Losses widened by just a cent to $0.15 per share in the same period.
The average global monthly active users (MAUs) of 67 million represented the 11th consecutive quarter of 40 million-plus average global MAUs on the platform and average revenue per user (ARPU) grew to $0.33 from $0.37 in the prior quarter.
Net cash from operating activities came in at an outflow of $74.7 million for the nine months ending Sept. 30, up from an outflow of $59.8 million in the year-ago period. Although this is concerning, the company closed the quarter with a cash balance of $130.8 million, which was considerably higher than its short-term debt of $25.7 million.
Strategic Drivers
Rumble’s decision to adopt a Bitcoin (BTCUSD) treasury strategy aligns it with companies like MicroStrategy (MSTR), which has successfully leveraged the asset. By allocating excess cash reserves to Bitcoin, Rumble positions itself to benefit from potential long-term price appreciation of “digital gold.” Additionally, Tether’s $775 million strategic investment, with $250 million directed to Rumble’s balance sheet, strengthens its financial foundation and expands its crypto-backed reserves.
Rumble’s commitment to free speech continues to differentiate it from platforms like YouTube. By avoiding demonetization or content removal based on controversial opinions, the company has attracted creators and users who value unrestricted expression. Rumble supports creators with guaranteed minimum payments, encouraging content production without tying compensation to revenue performance.
Revenue generation for Rumble spans multiple channels, including banner and display advertising, video ads, sponsorships, and tipping. This diversified model, coupled with its pro-creator approach, reinforces its growth potential.
Finally, Rumble’s emerging cloud business is another promising avenue. Maxim Group analyst Tom Forte highlights the market’s potential underestimation of Rumble’s ability to monetize its growing audience and develop a sustainable cloud computing segment. This expansion could significantly enhance the company's long-term prospects.
Analyst Opinion
Overall, the stock has limited coverage among the analyst community with a rating of “Moderate Buy” and a mean target price of $16.50. This denotes upside potential of about 28% from current levels. Out of three analysts covering the stock, one has a “Strong Buy” rating and two have a “Hold” rating.
