2 Reasons to Like RUM (and 1 Not So Much)

Shareholders of Rumble would probably like to forget the past six months even happened. The stock dropped 31.4% and now trades at $8.37. This may have investors wondering how to approach the situation.

Following the drawdown, is now the time to buy RUM? Find out in our full research report, it’s free.

Why Does Rumble Spark Debate?

Founded in 2013 as a champion for content creator rights and free expression, Rumble (NASDAQ:RUM) is a video sharing platform that positions itself as a free speech alternative to mainstream platforms, offering creators more favorable revenue-sharing opportunities.

Two Things to Like:

1. Skyrocketing Revenue Shows Strong Momentum

A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Rumble’s 95.2% annualized revenue growth over the last four years was incredible. Its growth surpassed the average business services company and shows its offerings resonate with customers.

2. Projected Revenue Growth Is Remarkable

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite, though some deceleration is natural as businesses become larger.

Over the next 12 months, sell-side analysts expect Rumble’s revenue to rise by 11.7%. While this projection is below its 38.4% annualized growth rate for the past two years, it is noteworthy and suggests the market sees success for its products and services.

One Reason to be Careful:

Free Cash Flow Margin Dropping

Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

As you can see below, Rumble’s margin dropped by 94.7 percentage points over the last five years. It may have ticked higher more recently, but shareholders are likely hoping for its margin to at least revert to its historical level. If the longer-term trend returns, it could signal it’s in the middle of a big investment cycle. Rumble’s free cash flow margin for the trailing 12 months was negative 87.8%.

Final Judgment

Rumble has huge potential even though it has some open questions. With the recent decline, the stock trades at $8.37 per share (or a trailing 12-month price-to-sales ratio of 19.7×). Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More Than Rumble

Donald Trump’s April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.