Rumble Shares Surge 9% on New Cloud Business Customer

Shares of Rumble, a right-wing competitor to YouTube, surged 9% following the news of acquiring Sticker Mule as a cloud client. This expansion signals a potential revenue boost, positioning Rumble Cloud favorably in the competitive market against larger firms.

Date: 16-10-2024

AI Rating: 7

Rumble's recent stock performance indicates investor optimism, with a 9% increase following the announcement of Sticker Mule becoming a client of Rumble Cloud. This new partnership signifies a step forward for Rumble, especially since its cloud business is relatively new and has just opened to the public in March. As Rumble seeks to generate additional revenue streams alongside its video-sharing platform, acquiring clients for its cloud service is crucial.

The collaboration with Sticker Mule involves migrating AI processing to Rumble's infrastructure, utilizing its existing Nvidia H100 capabilities. This development not only highlights the functionality of Rumble Cloud but also establishes its role as a competitive player in the cloud industry where it competes with giants like Amazon and Microsoft.

Furthermore, Rumble's CEO shared that this partnership is a logical progression since Sticker Mule has been an advertiser on the platform, reinforcing the symbiotic relationship between the two companies. More importantly, this partnership hints at Rumble's strategy of positioning itself as a proponent of free speech in the digital space, which may attract more customers in similar sectors.

In terms of financials, while Rumble recorded $22.5 million in revenue for the last quarter, it is clear that the cloud revenue is expected to contribute significantly to profit margins in the future. Such a move suggests an avenue for increasing profitability, mirroring the success of established players in the cloud market.

Additionally, as Rumble's financial report suggested positive progress in their cloud business, it positions the stock favorably for future investors watching closely for developments tied to the upcoming elections which may impact Rumble’s visibility and engagement levels.

Stocks: RUM