American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Rumble stock price has soared: time to short it now?

by admin December 27, 2024
December 27, 2024
Rumble stock price has soared: time to short it now?

Rumble stock price has gone parabolic this month as it surged to a record high of $17.35, its highest level since February 2022. It has soared by 28% this week and 380% from its lowest level this year, pushing its valuation to over $3.6 billion. 

Rumble shares soared after Tether, the biggest stablecoin provider in the world, made a big investment in it. So, is it a good investment or is the stock about to suffer a harsh reversal in the coming year?

Rumble stock faces major challenges

Rumble shares have soared in the past few months, thanks to the company’s $775 million investment from Tether and Donald Trump’s victory in the United States. This victory was important for the company because it is often seen as a free speech alternative to mainstream platforms like YouTube.

Tether’s investment is also notable because of its scale, which gives the company the cash it needs to fuel its growth without diluting its existing shareholders. The most recent financial results showed that the company was burning cash fast as its cash and short-term investments fell to $132 million. 

Rumble has also invested in other solutions to boost its business. Its most notable solution is its cloud computing solutions that it hopes will attract customers from companies like Google, Amazon and Microsoft. Rumble Cloud has onboarded clients like Miami Dolphins and Hard Rock Stadium as clients.

Rumble is also diversifying its content by focusing on sports and entertainment. This move is intended to attract a wider audience and advertising dollars. 

Still, the company is facing major challenges. The most notable one is that its audience is falling despite the recent Trump victory. According to SimilarWeb, total visits in November dropped by 1.64% to 59.49 million. YouTube had over 28.5 billion users in that period. 

Rumble’s business is also not growing as expected in an election year. The most recent results showed that the company’s revenue rose by 39% year over year to over $25.1 million, up 12% from the previous quarter. 

The results showed that the monthly active users rose to 67 million, while the average revenue per user was just 33 cents. It had a net loss of over $31.5 million, higher than the $29 million it lost in the same period last year.

Rumble’s key challenge will be monetizing its users as most mainstream companies always avoid advertising in conservative platforms. The other issue is attracting more users since it is still associated with right-leaning politics. 

Also, Rumble stock is highly overvalued at a time when its growth is slowing. Analysts forecast the stock at an average of $8, much higher than the current $16.2. That is a sign that RUM stock is severely overvalued.

Rumble stock price analysis

The daily chart shows that the Rumble share price has gone parabolic in the past few months. It has flipped the important resistance level at $11.25, its highest level in June 2023 and $9.20, its highest point in March. 

The stock has jumped above all moving averages, meaning that a mean reversion is possible. Mean reversion happens when a stock retreats and returns to its historical levels. 

The Relative Strength Index (RSI), MACD, and the Klinger Oscillator have all continued rising. Therefore, the stock will likely drop, and retest the support at $11.26 or $9.20. This performance is known as a break and retest, and is often a bullish sign. A move below the support at $9.20 will point to more downside in the longer term. 

Read more: Rumble stock price pattern points to a bearish breakdown

The post Rumble stock price has soared: time to short it now? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
US holiday retail sales 2024: what drove the unexpected surge?
next post
RGTI, QSI, QMCO, IONQ stocks are surging: time to short them?

Related Posts

Nickel Price Update: Q1 2024 in Review

April 13, 2024

Bitcoin Sets New Price Record, Surpasses Market Cap...

March 13, 2024

Carbon Done Right Announces Brokered Private Placement

April 12, 2024

Why has the SPDR Financial XLF ETF surged...

November 7, 2024

Rivian stock price is at crossroads, Nov. 9...

October 24, 2024

Edison Lithium

March 27, 2024

Can Vale’s upgraded iron ore forecast revive its...

September 12, 2024

Mullen Automotive stock has imploded: can MULN recover?

December 17, 2024

Are dividend aristocrat ETFs like NOBL and SDY...

February 23, 2025

Crypto price predictions: Terra Luna Classic, Monero, Litecoin

February 6, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,199)
    • Investing (2,531)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved