Rumble: Not Ready For Prime Time Yet

 

  • Rumble continues to fall as investors grasp with post SPAC valuation concerns.
  • The video-sharing platform is set to release Q3 results on November 14.
  • The stock has more appeal around $5 after the market fully grasp quarterly revenues are only in the $5 to $6 million range.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 

Rumble (NASDAQ:RUM) recently closed the SPAC deal with CF Acquisition Corp. VI to go public. The video-sharing platform has a lot of promise to open up the online video market, but the company still faces tons of growing pains. My investment thesis remains Bearish on the stock until after company publicly releases quarterly results and shareholders face the limited sales levels.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Update - Nov. 15
Rumble reported decent Q3 results with revenues nearly doubling expectations. The video platform only reported revenues of $11 million while listing diluted shares of 375 million placing the current market cap at ~$4 billion. Despite beating estimates, the market is still out of tune with the reality here. 
  •  Q3 GAAP EPS of -$0.01 beats by $0.01.
  • Revenue of $10.98M (+430.4% Y/Y) beats by $4.84M.


Update - Oct. 26

The Bear Cave short attack caused a floor in the stock. Guessing a lot of people covered shorts on the report. The next major risk is the Q3 earnings report on Nov. 14. 

Finviz Chart


Update - Oct. 20

Hadn't expected Bear Cave to issue a short report today. Though, the timing right after the security registration is vey fishy and possibly intended to create panic. 

-Video platform Rumble Inc., which went public through a de-SPAC deal last month, (NASDAQ:RUM) fell 16% amid a new short report from The Bear Cave.

-The Bear Cave short report argues that Rumble (RUM), viewed as a conservative alternative to YouTube, has struggled to move into mainstream content.

-"We dispute the premise of the “Bear Cave” article, whose author did not contact us or perform the most basic research before publishing," Rumble said in a statement. "Even a cursory fact-check would have destroyed the false innuendos peddled in his article".

Finviz Chart

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