Should Rumble's (RUM) New AI Partnership With Perplexity Signal a Shift in User Engagement Strategy?

• In recent days, Rumble announced a partnership with AI-powered answer engine Perplexity, introducing AI-driven discovery tools, a combined premium subscription bundle, and the promotion of Perplexity's Comet browser across the Rumble platform.
• This collaboration positions Rumble to address a core industry challenge, enhancing content discoverability for creators and viewers, as AI-integrated search becomes increasingly important in the digital video landscape.
• We'll examine how Rumble's integration of advanced AI-powered search tools could reinforce its efforts to expand user engagement and monetization.

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Rumble Investment Narrative Recap

To be a shareholder in Rumble, you have to believe in its ability to deliver strong user and revenue growth by tapping into demand for decentralized content monetization and driving creator engagement, especially through new tech and partnerships. While the recent Perplexity AI integration could strengthen content discoverability and user experience, it does not materially change the immediate risk posed by operating losses and the need for improved revenue margins for long-term stability.

Of the company’s recent announcements, the Tether partnership stands out as especially relevant. With the launch of the Rumble Wallet and planned USAT stablecoin integration, Rumble is positioning for international expansion and diversified monetization, which could act as a significant near-term catalyst for user and revenue growth.

By contrast, the risk of ongoing net losses and high content and infrastructure costs remains top of mind for investors who should be aware of...

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

Rumble's narrative projects $194.3 million revenue and $21.4 million earnings by 2028. This requires 23.1% yearly revenue growth and a $322.6 million earnings increase from -$301.2 million today.

Uncover how Rumble's forecasts yield a $14.50 fair value, a 96% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members offered fair value estimates for Rumble from as low as US$1.76 to US$14.50, capturing a wide spread in just 2 views. Against this backdrop, persistent operating losses continue to shape expectations and highlight why it can pay to explore multiple perspectives before forming your own outlook.

Explore 2 other fair value estimates on Rumble - why the stock might be worth as much as 96% 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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