Rumble (RUM) Is Up 18.8% After Tether Boosts Stake and Crypto Partnership Expansion—What's Changed

• Rumble saw heightened investor interest recently after news that Tether, a major stablecoin issuer, increased its stake to approximately 104.4 million shares and continued partnerships involving cryptocurrency integrations on Rumble’s platform.
• This development coincided with broad market optimism following comments from a Federal Reserve official suggesting a potential interest rate cut, which positively influenced sentiment toward technology companies like Rumble.
• We’ll explore how Tether’s deepening involvement in Rumble may influence the company’s outlook and investment narrative.

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Rumble Investment Narrative Recap

To be a shareholder in Rumble, you must believe in the company's ability to transform aggressive growth investments, particularly in crypto integrations and AI infrastructure, into sustainable user and revenue growth, despite ongoing operating losses. The recent news of Tether increasing its stake and further crypto integration boosts visibility around these growth initiatives, but does not materially reduce the biggest short-term risk: the need for rapid revenue scaling and margin improvement to avoid sustained cash burn and mounting losses.

Among recent corporate developments, the partnership with Tether stands out as most relevant, as it lays the groundwork for the upcoming launch of Rumble Wallet with integrated crypto tipping and payments. This catalyst is closely tied to the business’s expansion into new monetization models and international markets, directly supporting Rumble’s bid for higher engagement and diversified revenue, although execution risks remain significant.

But in contrast, investors should also be aware of the risk if Rumble’s creator business underperforms or its AI/cloud pivot doesn’t achieve scale...

Read the full narrative on Rumble (it's free!)

Rumble's outlook anticipates $194.3 million in revenue and $21.4 million in earnings by 2028. Achieving this would require an annual revenue growth rate of 23.1% and a turnaround in earnings of $322.6 million, up from current earnings of -$301.2 million.

Uncover how Rumble's forecasts yield a $15.50 fair value, a 129% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community span US$1.50 to US$22 per share, reflecting sharply different views. While some focus on the appeal of growth catalysts like crypto partnerships, others stress ongoing operating losses and unpredictable profit timelines as key concerns for performance.

Explore 3 other fair value estimates on Rumble - why the stock might be worth over 3x more than the current price!

Build Your Own Rumble Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Rumble research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Rumble's overall financial health at a glance.

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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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