Rumble Stock Skyrockets: The Inside Scoop on Today’s Surge

Rumble shares just pulled off a gravity-defying rally—here's why traders are piling in.

The Short Squeeze Play

Meme-stock energy is back. Retail traders flooded into RUM, triggering a classic short squeeze that left bears scrambling.

Earnings Smoke & Mirrors

Wall Street's suddenly bullish after one decent quarter—never mind the twelve previous money-losers. Because this time it's different (wink).

Big Tech's Shadow

With YouTube and Facebook tightening censorship, Rumble's 'free speech' angle is attracting both users and political capital.

The platform's still tiny compared to rivals, but in today's market, potential trumps profits every time. Just ask any SPAC investor.

Image source: Getty Images.

Rumble stock rises on potential AI expansion play

Along with the second-quarter report that it published on Aug. 10, Rumble announced that it is interested in acquiring AI company. The high-performance-computing (HPC) specialist has yet to signal that it's open to being acquired, and no valuation level has been set on Rumble's all-stock offer to acquire the company. Despite the shortage of information related to the potential buyout, investors showed signs of approval in today's trading and bid the streaming stock up to levels significantly exceeding yesterday's close.

What's next for Rumble?

While plays in the AI and cryptocurrency spaces could help boost valuation momentum, Rumble's recent quarterly results continue to raise questions about the company's outlook. The business posted a loss of $0.12 per share on sales of $25.08 million in the second quarter. For comparison, the average analyst estimate had called for a loss of $0.07 per share on sales of roughly $26.8 million.

Rumble closed out the quarter with an average of 51 million monthly active users (MAUs), down from 59 million MAUs in this year's first quarter and 53 million MAUs in Q2 2024. On the other hand, average revenue per user was actually up 24% year over year to $0.42.

On balance, Rumble streaming engagement and monetization still looks somewhat shaky -- and that puts added pressure on other growth initiatives.