Rumble Inc. Stock Jumps 91%. What’s Behind Its Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 23 2024
0mins
Source: Barron's
Rumble's Stock Surge: Rumble's stock soared 91% to $13.73 after announcing a $775 million investment from Tether, with plans to use part of the funds for growth initiatives and share buybacks.
Company Background and Controversies: Founded in 2013 as an alternative to YouTube, Rumble has positioned itself as a proponent of free speech but has faced criticism for hosting conspiracy theories and recently sued California officials over content regulation laws.
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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: 7.870
Low
22.00
Averages
22.00
High
22.00
Current: 7.870
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.
Rumble Advances Acquisition of Northern Data with 85.2% Stake Secured
- Equity Acquisition Progress: Rumble announced that Northern Data shareholders tendered over 8.1 million shares through the exchange offer, securing approximately 85.2% of the equity, reflecting positive market sentiment towards the deal, which is expected to close in mid-June, further solidifying Rumble's position in high-performance computing.
- Cloud Business Expansion: The acquisition will enable Rumble to gain 22,400 Nvidia AI chips, including advanced H100 and H200 GPUs, significantly enhancing its cloud computing capabilities while also acquiring Northern Data's data center network in Europe and the U.S., boosting its competitive edge in the market.
- Commercial Partnership Agreement: Rumble has secured a deal with Tether to purchase up to $150 million in GPU computing services over the next two years, along with a $100 million advertising commitment, which will provide substantial incremental revenue and further drive business growth.
- Optimistic Market Sentiment: On Stocktwits, retail sentiment around Rumble remains bullish, with a 1,146% surge in message volume over 24 hours, as investors express excitement about potential future cloud contracts, anticipating sustainable revenue growth post-acquisition.
See More
Rumble Inc. Under Investigation for Securities Fraud
- Financial Performance Decline: Rumble Inc. reported record revenue in Q1 2026; however, due to increased marketing costs, acquisition-related expenses, and R&D spending, the company posted a net loss of $30.2 million, a significant deterioration from a loss of $2.6 million in the prior year, indicating a sharp decline in profitability.
- Stock Price Reaction: Following the earnings report on May 15, 2026, Rumble's stock price fell by $0.97, or 11.87%, closing at $7.20 per share, reflecting market concerns regarding the company's financial health.
- Legal Investigation Initiated: Pomerantz LLP is investigating whether Rumble and its executives have engaged in securities fraud or other unlawful business practices, advising investors to contact the firm for more information, highlighting the potential legal risks facing the company.
- Historical Context: Pomerantz LLP, a prominent securities class action law firm with over 85 years of experience, focuses on fighting for the rights of victims of securities fraud, indicating the serious legal challenges Rumble may face and the potential impact on its reputation.
See More
Schall Law Firm Investigates Claims for Rumble Investors
- Investigation Launched: The Schall Law Firm has announced an investigation into Rumble Inc. on behalf of investors, focusing on potential violations of securities laws, particularly whether the company issued false or misleading statements and failed to disclose information critical to investors' interests.
- Financial Losses: Rumble's Q1 2026 financial report revealed that increased marketing and R&D expenses led to a significantly larger net loss compared to the prior year, highlighting challenges in the company's cost management strategies.
- Stock Price Reaction: Following the earnings report, Rumble's shares fell by nearly 11.9% the next day, indicating market concerns over the company's financial health and potentially undermining investor confidence, which could impact future fundraising efforts.
- Investor Rights Protection: The Schall Law Firm encourages affected shareholders to reach out for free consultations regarding their rights, demonstrating the firm's commitment to safeguarding investor interests and potentially providing legal support for impacted shareholders.
See More
Rumble Completes Exchange Offer for Northern Data AG
- Acquisition Progress: Rumble (RUM) reported the final results of its exchange offer for Northern Data AG (NDTAF), with 8.17 million shares tendered, representing 46.2% of the shares not covered by transaction support agreements, indicating strong shareholder approval of the deal.
- Increased Share Control: Including shares committed under transaction support agreements, Rumble has secured approximately 85.2% of Northern Data's outstanding shares, demonstrating significant shareholder backing that enhances the legitimacy and market confidence in the transaction.
- Strategic Integration Potential: The merger is expected to create a fully integrated AI and cloud platform, leveraging enhanced scale, advanced technology capabilities, and a stronger balance sheet to compete more effectively on a global stage, driving future growth for the company.
- Positive Market Reaction: Rumble noted that the high acceptance rate not only reflects shareholder support for the transaction but also indicates market confidence in its future strategy, potentially attracting more investor interest in its long-term growth prospects.
See More
Rumble Secures 85% Stake in Northern Data Amid Strategic Acquisition
- High Acceptance Rate: Rumble has successfully acquired 85.2% of Northern Data's shares, with 8,174,379 shares tendered from those not under transaction support agreements, indicating strong shareholder approval and enhancing Rumble's market position in AI computation and cloud infrastructure.
- Transaction Timeline: The additional acceptance period expired on June 1, 2026, with the closing expected in mid-June 2026, and Northern Data will file for delisting on the Munich Stock Exchange immediately after, marking a smooth progression of the transaction.
- Strategic Integration Potential: This acquisition aims to integrate Rumble's and Northern Data's resources to establish an independent AI and cloud platform with global competitiveness, driving advancements in digital video innovation and high-performance computing.
- Broad Market Prospects: The combination of Rumble's cloud services and Northern Data's high-performance computing capabilities is expected to attract more clients and increase market share, further solidifying both companies' leadership positions in the rapidly evolving technology market.
See More
Mixed Performance in US Markets as Dow Hits Record High
- Dow Hits Record High: The Dow Jones Industrial Average surged 1.7% to close at 51,561.93, marking a new all-time high, reflecting market optimism regarding economic resilience and robust corporate earnings.
- Nasdaq Weakness: The Nasdaq 100 fell 0.5%, primarily dragged down by declines in chipmakers like Broadcom, indicating the vulnerability of tech stocks amid market fluctuations.
- Oil Price Decline Boosts Sentiment: The cooling of oil prices has bolstered market sentiment, despite ongoing tensions between the U.S. and Iran, providing investors with a 'buy-the-dip' opportunity amid improved outlooks.
- Key Economic Data Ahead: Investors are awaiting a crucial jobs report set to be released, which will establish the tone for future interest rate decisions by the U.S. Federal Reserve, further influencing market dynamics.
See More
Rumble Advances Acquisition of Northern Data with 85.2% Stake Secured
- Equity Acquisition Progress: Rumble announced that Northern Data shareholders tendered over 8.1 million shares through the exchange offer, securing approximately 85.2% of the equity, reflecting positive market sentiment towards the deal, which is expected to close in mid-June, further solidifying Rumble's position in high-performance computing.
- Cloud Business Expansion: The acquisition will enable Rumble to gain 22,400 Nvidia AI chips, including advanced H100 and H200 GPUs, significantly enhancing its cloud computing capabilities while also acquiring Northern Data's data center network in Europe and the U.S., boosting its competitive edge in the market.
- Commercial Partnership Agreement: Rumble has secured a deal with Tether to purchase up to $150 million in GPU computing services over the next two years, along with a $100 million advertising commitment, which will provide substantial incremental revenue and further drive business growth.
- Optimistic Market Sentiment: On Stocktwits, retail sentiment around Rumble remains bullish, with a 1,146% surge in message volume over 24 hours, as investors express excitement about potential future cloud contracts, anticipating sustainable revenue growth post-acquisition.
See More
Rumble Inc. Under Investigation for Securities Fraud
- Financial Performance Decline: Rumble Inc. reported record revenue in Q1 2026; however, due to increased marketing costs, acquisition-related expenses, and R&D spending, the company posted a net loss of $30.2 million, a significant deterioration from a loss of $2.6 million in the prior year, indicating a sharp decline in profitability.
- Stock Price Reaction: Following the earnings report on May 15, 2026, Rumble's stock price fell by $0.97, or 11.87%, closing at $7.20 per share, reflecting market concerns regarding the company's financial health.
- Legal Investigation Initiated: Pomerantz LLP is investigating whether Rumble and its executives have engaged in securities fraud or other unlawful business practices, advising investors to contact the firm for more information, highlighting the potential legal risks facing the company.
- Historical Context: Pomerantz LLP, a prominent securities class action law firm with over 85 years of experience, focuses on fighting for the rights of victims of securities fraud, indicating the serious legal challenges Rumble may face and the potential impact on its reputation.
See More
Schall Law Firm Investigates Claims for Rumble Investors
- Investigation Launched: The Schall Law Firm has announced an investigation into Rumble Inc. on behalf of investors, focusing on potential violations of securities laws, particularly whether the company issued false or misleading statements and failed to disclose information critical to investors' interests.
- Financial Losses: Rumble's Q1 2026 financial report revealed that increased marketing and R&D expenses led to a significantly larger net loss compared to the prior year, highlighting challenges in the company's cost management strategies.
- Stock Price Reaction: Following the earnings report, Rumble's shares fell by nearly 11.9% the next day, indicating market concerns over the company's financial health and potentially undermining investor confidence, which could impact future fundraising efforts.
- Investor Rights Protection: The Schall Law Firm encourages affected shareholders to reach out for free consultations regarding their rights, demonstrating the firm's commitment to safeguarding investor interests and potentially providing legal support for impacted shareholders.
See More
Rumble Completes Exchange Offer for Northern Data AG
- Acquisition Progress: Rumble (RUM) reported the final results of its exchange offer for Northern Data AG (NDTAF), with 8.17 million shares tendered, representing 46.2% of the shares not covered by transaction support agreements, indicating strong shareholder approval of the deal.
- Increased Share Control: Including shares committed under transaction support agreements, Rumble has secured approximately 85.2% of Northern Data's outstanding shares, demonstrating significant shareholder backing that enhances the legitimacy and market confidence in the transaction.
- Strategic Integration Potential: The merger is expected to create a fully integrated AI and cloud platform, leveraging enhanced scale, advanced technology capabilities, and a stronger balance sheet to compete more effectively on a global stage, driving future growth for the company.
- Positive Market Reaction: Rumble noted that the high acceptance rate not only reflects shareholder support for the transaction but also indicates market confidence in its future strategy, potentially attracting more investor interest in its long-term growth prospects.
See More
Rumble Secures 85% Stake in Northern Data Amid Strategic Acquisition
- High Acceptance Rate: Rumble has successfully acquired 85.2% of Northern Data's shares, with 8,174,379 shares tendered from those not under transaction support agreements, indicating strong shareholder approval and enhancing Rumble's market position in AI computation and cloud infrastructure.
- Transaction Timeline: The additional acceptance period expired on June 1, 2026, with the closing expected in mid-June 2026, and Northern Data will file for delisting on the Munich Stock Exchange immediately after, marking a smooth progression of the transaction.
- Strategic Integration Potential: This acquisition aims to integrate Rumble's and Northern Data's resources to establish an independent AI and cloud platform with global competitiveness, driving advancements in digital video innovation and high-performance computing.
- Broad Market Prospects: The combination of Rumble's cloud services and Northern Data's high-performance computing capabilities is expected to attract more clients and increase market share, further solidifying both companies' leadership positions in the rapidly evolving technology market.
See More
Mixed Performance in US Markets as Dow Hits Record High
- Dow Hits Record High: The Dow Jones Industrial Average surged 1.7% to close at 51,561.93, marking a new all-time high, reflecting market optimism regarding economic resilience and robust corporate earnings.
- Nasdaq Weakness: The Nasdaq 100 fell 0.5%, primarily dragged down by declines in chipmakers like Broadcom, indicating the vulnerability of tech stocks amid market fluctuations.
- Oil Price Decline Boosts Sentiment: The cooling of oil prices has bolstered market sentiment, despite ongoing tensions between the U.S. and Iran, providing investors with a 'buy-the-dip' opportunity amid improved outlooks.
- Key Economic Data Ahead: Investors are awaiting a crucial jobs report set to be released, which will establish the tone for future interest rate decisions by the U.S. Federal Reserve, further influencing market dynamics.
See More
