Shares of Rumble(NASDAQ: RUM) experienced a significant surge today, bolstered by a wave of enthusiasm after President-elect Trump’s recent victory. This increase is part of a broader trend seen in the so-called “Trump trade,” where stocks like Tesla and cryptocurrencies, including Bitcoin, also saw gains. While there were no major headlines specifically affecting Rumble, an intriguing development likely added to the stock’s momentum.
Rumble stock closed up 18% on the day.
Image source: Getty Images.
Backing from High-Profile Investors
Rumble’s shares initially jumped in after-market trading last Tuesday. However, the stock declined on Wednesday, indicating that some investors treated the event as a buy-the-rumor/sell-the-news situation. Yet, following renewed investor interest on Friday, Rumble saw substantial gains today, even while the S&P 500 index remained nearly unchanged amid ongoing market adjustments post-election.
A key factor that may have contributed to today’s boost is the election victory of Dave McCormick, former CEO of the hedge fund Bridgewater Associates, in the Pennsylvania Senate race. Reports suggest that McCormick’s largest stock holding is Rumble, with an estimated worth of $4 million. While he owns this stock, the impact on Rumble’s business remains indirect. Nonetheless, his high-profile status as both a hedge fund millionaire and a U.S. Senator could attract more investors to the company.
Looking Ahead: Can Rumble Sustain Its Gains?
Last week, Rumble announced that it reached multiple record milestones on its platform, including live streams, concurrent views, user consumption, Rumble Premium subscribers, and advertising revenue. Notably, it achieved a peak of 1.79 million concurrent viewers on election night.
Whether this momentum will continue remains uncertain. However, Trump’s election may shine a brighter light on conservative media platforms like Rumble, potentially increasing user engagement.
Despite this optimism, Rumble is still a small and unprofitable company. It faces significant challenges ahead to prove itself as a solid investment in the long term.
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
