Rumble (RUM): Evaluating Valuation After Strategic Perplexity AI Partnership Announcement

Rumble (RUM) announced a new partnership with Perplexity, introducing a bundled subscription that includes Rumble Premium and Perplexity Pro at a discounted monthly rate. This collaboration brings AI tools to Rumble’s platform and has the potential to expand user engagement.

See our latest analysis for Rumble.

Rumble’s announcement of its Perplexity partnership has stirred up plenty of discussion, but recent share price returns have been tough. The stock slipped by 44% year-to-date and is now trading at $6.94. Still, with a one-year total shareholder return of nearly 24%, long-term investors have seen some upside even as short-term momentum fades and the market tries to gauge how these AI moves will influence future growth and risk perceptions.

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But after this major partnership announcement and a rocky share price history, is Rumble now trading at a meaningful discount? Alternatively, have markets already accounted for the company’s future AI ambitions? Is there a true buying opportunity here, or are investors late to the party?

Most Popular Narrative: 52% Undervalued

With the most recent close at $6.94 and the widely followed narrative placing fair value at $14.50, the perceived upside is dramatic. Investors weighing Rumble’s AI expansion and ambitious partnerships will want to understand what could fuel such a gap.

Expanding commercial partnerships, for example with Tether, Cumulus Media, leading AI players, and MoonPay, creates diversified revenue streams and unlocks new ad inventory and creator monetization opportunities. This supports both revenue and ARPU growth, while mitigating reliance on a niche user base.

Read the complete narrative.

What’s driving this high fair value? The narrative is built on projections of rapid revenue acceleration, strong international growth momentum, and a bold shift into AI and cloud infrastructure. But how aggressive are the underlying profit assumptions? Unlock the full perspective behind these numbers.

Result: Fair Value of $14.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent operating losses or setbacks with the AI expansion could quickly challenge the case for Rumble’s long-term upside narrative.

Find out about the key risks to this Rumble narrative.

Another View: Multiples Suggest a Steep Premium

While the narrative implies notable undervaluation, the current price-to-sales ratio tells a very different story. Rumble trades at 22.6x sales, which is significantly higher than the US industry average of 1.4x and a fair ratio of just 1.3x. This clear disconnect suggests investors are betting on substantial future growth and may be overlooking near-term risks. Could this premium indicate more downside if lofty expectations are not met?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Rumble Narrative

If you want to challenge the consensus or dig into the numbers your own way, you can dive in and build a fresh take in just a few minutes with Do it your way.

A great starting point for your Rumble research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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