Rumble (NASDAQ: RUM) inventory recorded explosive features throughout 2024. The video-streaming firm’s share value rocketed 189.8% larger in final yr’s buying and selling, in line with information from S&P Global Market Intelligence.
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Rumble inventory posted large features in 2024 because of new content material offers, political tailwinds, and a push into the cryptocurrency area. However the firm’s share value began to see a big pullback close to the very finish of the yr, and sell-offs have continued in 2025.
Rumble inventory had an enormous 2024
Rumble inventory noticed some robust features early final yr after the corporate introduced that it had entered right into a partnership with Barstool Sports activities. By way of their deal, Barstool introduced content material to Rumble’s video streaming platform and in addition shaped an promoting relationship with the corporate.
For months afterward, Rumble inventory noticed average strikes up and down. However the inventory did begin seeing upward momentum main as much as and following Donald Trump’s victory within the presidential election. A lot of the content material on Rumble skews towards the correct facet of the political aisle, and a few traders purchased into the inventory as a approach to revenue from a Trump election win.
Then, Rumble revealed a press launch on Nov. 25 detailing its new cryptocurrency technique. Per the announcement, the corporate stated that it was planning on shopping for as much as $20 million price of Bitcoin. The inventory gained floor following the announcement, however there was different crypto-related information that powered even larger features.
On Dec. 20, Rumble introduced that it had secured $775 million in funding from Tether — the corporate behind the Tether stablecoin. By way of the deal, Rumble will likely be promoting $775 million price of recent inventory to Tether at a value of $7.50 per share. The streaming specialist will use $250 million of the cash from the inventory sale to fund its progress initiatives and the opposite $525 million to purchase again inventory from different giant shareholders. Rumble inventory noticed large features on the information as some traders guess that the corporate might be within the early levels of seeing bigger crypto-related tailwinds.
Why is Rumble inventory sinking in 2025?
After a formidable run final yr, Rumble inventory has seen an enormous pullback early in 2025’s buying and selling. As of this writing, the corporate’s share value is down 15.8% yr so far.
Rumble inventory has been dropping floor because of rising macroeconomic threat components. Current U.S. jobs information revealed by the Bureau of Labor Statistics has raised considerations that inflationary pressures may wind up being stronger than beforehand anticipated. Because of this, the Federal Reserve may take a extra cautious method to chopping rates of interest — which might be an unfavorable growth for progress shares.
With the corporate at present valued at roughly 27.4 instances this yr’s anticipated gross sales, Rumble has a extremely growth-dependent valuation and will see additional share value contraction if macroeconomic pressures intensify. Moreover, it isn’t clear that the cope with Tether will do a lot to vary the corporate’s fundamentals.
Whereas the inflow of money will assist the corporate fund its operations and pursue progress avenues, Rumble’s streaming platform has been placing up regarding engagement and monetization numbers. Political tailwinds and cryptocurrency connections may give shares a lift, however traders ought to method this inventory with the understanding that it is a dangerous play.
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Keith Noonan has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Bitcoin. The Motley Idiot has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
