Rumble Stock Plunges 9.3% Amid Market Pressure

Rumble stock is down 9.3% as investors sell for tax purposes. A fading bullish momentum from recent investments raises concerns over future performance.

Date: 30-12-2024

AI Rating: 5

Market Performance and Tax Selling
Rumble's share price is experiencing a significant drop, down 9.3% as investors take profits and sell stocks, affecting overall market trends. The S&P 500 and Nasdaq have also encountered declines, suggesting broader market pressures.

Impact of Investments
Recently, Rumble announced a hefty $775 million investment from Tether, which initially propelled its stock up significantly, resulting in a 91% month-to-date increase before today's drop. However, only $250 million of the investment is directed toward expanding Rumble's operations, with most earmarked for share repurchases. This allocation raises questions about the sustainability of Rumble’s growth amid a high valuation of over 40 times expected sales.

Growing Concerns
Rumble's market cap at approximately $3.9 billion could give it leverage, yet the limited direct investment into growth initiatives might worry potential investors. Moreover, the earlier momentum from being a meme-stock seems to be waning, which could lead to further volatility in its stock price.

Stocks: RUM