Rumble: Hopefully You Sold The Rally (Rating Downgrade)
Updated - Mar. 31, 2023
Rumble didn't hold the initial massive after-hours rally as the big Q4'22 beat won't repeat in Q1'23. The CFO guided to sequentially lower revenue in the just ending March quarter. The stock valuation is very rich at $3 billion with the quarterly revenues below $20 million.
- Q4 GAAP EPS of $0.00.
- Revenue of $19.96M (+578.9% Y/Y).
- Average global Monthly Active Users increased 142% to 80 million, a company record, compared to 33 million in the fourth quarter of 2021. Of the 80 million, 65 million were based in the U.S. and Canada, compared to 21 million in the U.S. and Canada during the fourth quarter of 2021.
The stock not breaking $10 appears very bearish.
Original article posted on Feb. 13
- Rumble Inc. recently rallied above $10 on hype surrounding new content deals and a market rebound.
- The Power Slap content partnership is promising, but the engagement is still relatively low.
- Rumble stock should trade down to at least $5, where the market cap is still nearly $2 billion.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
As the market soared the last couple of months, Rumble Inc. (NASDAQ:RUM) roared back to $10. The "neutral" video platform continues to grow the user base and add new content partners, but RUM stock is valued for 10x the current sales operation. My investment thesis is now ultra-Bearish on the stock while being positive on the long-term business plan.
Read the full article on Seeking Alpha.
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