Pomerantz Investigates Rumble Inc. for Securities Fraud
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2026
0mins
Source: PRnewswire
- Financial Performance Decline: Rumble Inc. reported record revenue in Q1 2026; however, due to significantly increased marketing costs, acquisition-related expenses, and R&D spending, the company faced a net loss of $30.2 million, a stark contrast to the $2.6 million loss from the previous year.
- Stock Price Reaction: Following the earnings report, Rumble's stock price dropped by $0.97, or 11.87%, closing at $7.20 per share on May 15, 2026, indicating investor concerns regarding the company's financial health.
- Legal Investigation Initiated: Pomerantz LLP is investigating Rumble and its executives for potential securities fraud and other unlawful business practices, advising investors to contact them for information on joining the class action, highlighting the market's heightened scrutiny of corporate governance.
- Historical Context: Pomerantz LLP, a prominent firm in securities class action litigation with over 85 years of experience, focuses on advocating for victims of securities fraud and corporate misconduct, suggesting that this investigation could have significant implications for Rumble's reputation and future operations.
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Analyst Views on RUM
Wall Street analysts forecast RUM stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 9.460
Low
22.00
Averages
22.00
High
22.00
Current: 9.460
Low
22.00
Averages
22.00
High
22.00
No data
About RUM
Rumble Inc. is a video sharing platform and cloud services provider. The Company comprises two businesses: Rumble Services and Rumble Cloud. Rumble Services consists of Rumble Video, Rumble Studio, Rumble Advertising Center (RAC) and Rumble Wallet. Rumble Video is primarily enabled through its flagship product, Rumble.com, a free-to-use video sharing and livestreaming platform on which users can watch, share, like, comment and upload videos. Using Rumble Studio, creators can establish a variety of custom settings for their livestream, set up, go-live and control their livestream across multiple social platforms. Rumble Advertising Center is its proprietary advertising marketplace and network designed to facilitate transactions for advertisers seeking to access Rumble.com traffic and traffic from other publishers on the RAC network. Rumble Cloud is an infrastructure as a service (IaaS) offering consisting of a portfolio of compute, storage, security and networking offerings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Northern Data Acquisition: Rumble has confirmed its acquisition of Northern Data AG as its 'best and final' offer, with a deadline set for June 1, 2026, which will provide Rumble with thousands of Nvidia GPUs and 250 megawatts of data center capacity, thereby strengthening its cloud service capabilities.
- Positive Stock Reaction: Following the announcement of its entry into the AI market, Rumble's stock price surged nearly 6.5%, reflecting investor optimism about the company's future growth potential, with a year-to-date increase of 44.3%, indicating strong market confidence.
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- Financial Losses: Rumble's Q1 2026 financial results revealed that increased marketing costs and higher R&D spending led to a significantly larger net loss compared to the prior year, indicating potential risks to the company's financial health.
- Stock Price Decline: Following this news, Rumble's shares fell by nearly 11.9% the next day, reflecting market concerns about the company's financial situation and possibly leading to decreased investor confidence.
- Investor Rights: The Schall Law Firm encourages affected shareholders to reach out for discussions about their rights, demonstrating the firm's commitment to protecting investors' legal interests and providing legal support.
See More
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- Management Endorsement: Northern Data's Management and Supervisory Boards unanimously recommend shareholders accept Rumble's offer, demonstrating management's support for the transaction, which could bolster shareholder confidence.
- Exchange Ratio Confirmed: Each Northern Data shareholder that validly tenders will receive 2.0281 shares of Rumble Class A common stock, ensuring transparency and attractiveness of the deal, potentially encouraging more shareholder participation.
- Regulatory Approvals Secured: All regulatory approvals have been obtained, and the offer is not conditioned on a minimum tender threshold, further simplifying the transaction and potentially accelerating its completion.
See More
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See More
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- Unique Market Positioning: Centered around scientific transparency and medically supervised performance enhancement, the Enhanced Games attracted numerous marquee brands, which recognized that they were not just purchasing ad placements but investing in a new global sports franchise with long-term brand equity potential.
- Broad Audience Reach: The event was streamed for free on the Roku Sports Channel to over 100 million households, and with global digital distribution through platforms like ZOOP and Rumble, partners gained access to a young, highly engaged audience that is difficult to reach through traditional sports channels.
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- Financial Losses: Rumble's Q1 2026 financial results revealed that increased marketing and R&D expenses led to a significantly larger net loss compared to the prior year, indicating a deterioration in the company's financial health.
- Stock Price Volatility: Following the earnings report, Rumble's shares fell nearly 11.9% the next day, reflecting market concerns about the company's future prospects and potentially undermining investor confidence.
- Investor Rights: The Schall Law Firm is encouraging affected shareholders to participate in the litigation, emphasizing its expertise in securities class actions and shareholder rights litigation to protect investors' legal interests.
See More
