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Rumble Inc Stock (NASDAQ: RUM) A Smart Bet

Rumble Inc Stock (NASDAQ: RUM) A Smart Bet
Published on
September 26, 2022
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Rumble Inc Stock (NASDAQ: RUM), a fast-growing video-sharing platform that pledges to give everyone a voice and become a refuge amid the cancel culture, has made it to NASDAQ, trading under the ticker RUM. The listing was announced last Monday, following the company’s merger with SPAC firm CF Acquisition Corp. VI (NASDAQ: CFVI).https://twitter.com/rumblevideo/status/1571868443032297472The price of RUM opened above $12 and surged to over $16 in a few hours. It has eventually corrected and is now trading near the open. RUMFor Rumble, RUM is a ticker with some deeper meaning, as it is associated with rum, one of the most popular alcoholic drinks in America in the 1800s. At the time, rum was one of the catalysts that led to the American Revolution due to unrest created by the British-imposed Sugar Act of 1764, which limited the production and trade of molasses, a key ingredient used to produce rum. The symbolism is evident, as Rumble is promoting itself as a platform that protects freedom.Rumble CEO Chris Pavlovski said:

“As a mission-driven company, we do everything with a purpose. As we considered available tickers, the history of rum as a symbol of freedom was the perfect match for Rumble.”

Rumble Leveraging Its YouTube Alternative Status

Rumble has grown in popularity during the last few years mainly thanks to its promise to give everyone a voice and avoid banning opinions that go against the official narrative, something which YouTube and other platforms have been doing for a while.For example, last month, Alphabet’s platform banned kickboxer Andrew Tate for making some controversial claims in his videos that went viral. Previously, YouTube banned several episodes of Joe Rogan, who is the most popular podcaster today. In one of the banned clips, he was interviewing physician and biochemist Dr. Robert Malone, with the video being removed for spreading “vaccine disinformation.”Earlier this year, Rumble even offered Joe Rogan $100 million for switching from Spotify, although he rejected it.Following the announcement of the merge with CFVI, Rumble was praised by Joe Rogan, who said at the beginning of September:

“They're starting to do some stuff where they are getting bigger and bigger names. […] and if they do that, and it becomes popular enough, and they can operate the way they are doing now, with no censorship, it's a very interesting alternative.”

With YouTube trying to please the government and the official narrative, Rumble is able to play its “free-speech” card. Even though it’s currently promoted as a go-to video platform for the far-right and conspiracy theorists by the mainstream media, Rumble is much broader and can really become a YouTube alternative in a few years.Today, Rumble’s $3 billion valuation makes it only about 1% of YouTube, so there is much room for growth.YouTube has the advantage of being a subsidiary of Google (Alphabet), which could favor YouTube videos in the first place. The confrontation between Rumble and YouTube became direct, with the former launching an antitrust suit against Google in 2021, alleging that it favored YouTube in search results and on Android. Google urged the court to dismiss significant parts of the reasoning, but a California judge said last month that Rumble could proceed with the case.[embed]https://www.youtube.com/watch?v=dcC4AfYBQbE[/embed]

Rumble Growing Very Fast

What we like about Rumble is that it continues to grow fast and has great prospects for the medium-term and long-term future.Earlier this month, the company said that its user base had hit another record in August, with its global monthly active users (MAUs) surging to 78 million, up 77% year-on-year. In the US and Canada alone, the MAUs gauge surged 103% y/y to 63 million. More importantly, Rumble noted that a significant portion of this growth came from users in the 18- to 24-year-old 'Gen Z' age group, suggesting that the platform will do well in the future.Rumble CEO Chris Pavlovski commented:

“When you look at the data, and especially our 63 million MAUs in the U.S. and Canada, it is clear to me that Rumble's growth is one of the reasons that Big Tech platforms have stagnated. In recent years, our user growth came primarily from consumers of news and political content. As new content creators come to Rumble, we are seeing growth from the Gen Z demographic, a massive new audience for our platform.”

It’s worth noting that momentum keeps building, with the MAUs figure showing a steep increase that shows no signs of stagnation.Meanwhile, more and more important names are joining the platform, some of whom are switching from YouTube altogether.About two weeks ago, Rumble said that influential comedian and podcaster Russell Brand would launch a new daily live show exclusive on its platforms.At the beginning of the month, Pulitzer Prize-winning journalist Glen Greenwald, who authored four bestselling books on politics and law, announced that he would launch a daily live show exclusively on Rumble’s subscription-based community platform, Locals. Greenwald said:

“I am thrilled to be on Rumble where free speech is a highly valued commodity, and I can focus on my journalistic endeavors with complete independence and without fear of interference.”

Meanwhile, Rumble also secured an exclusive partnership with David Freiheit (VivaFrei), an accomplished attorney and successful content creator on YouTube. The partnership will include exclusive livestreams on Rumble an average of four times per week, including VivaFrei's Sunday show, which has gained popularity on YouTube.https://twitter.com/thevivafrei/status/1573496519407321095These came in September alone, with other important names pondering a potential move to Rumble. Last year, the platform was joined by former US president Donald Trump, after was previously banned from most major social media platforms. It’s worth noting that Rumble also manages ad sales for Trump’s own social media platform, Truth Social.

Why Rumble Is a Great Stock

We like Rumble because it is a genuine alternative that is regarded by many as a solution against Big Tech censorship. There are many alternative video platforms and media sites, but Rumble has shown some resilience and sustained popularity that is still expanding. Rumble’s mission to protect free speech is a good selling point that will become even more relevant over the years, as Western governments begin to show autocratic tendencies.Pavlovski explained:

“Rumble is creating the rails to a new infrastructure that will not be bullied by cancel culture. We are a movement that does not stifle, censor, or punish creativity and freedom of expression.”

In conclusion, we like RUM because of the following reasons:

  • It is the only major video platform that can be genuinely regarded as a YouTube alternative.
  • Even though it seems to be oriented towards the right and conservatives, the platform may stay neutral and expand its audience to include different groups and opinions.
  • Rumble has previously secured private financing from conservative venture capitalist Peter Thiel as well as Senate candidate and “Hillbilly Elegy” author J.D. Vance.
  • All the major metrics are increasing at an impressive pace, with the platform experiencing record numbers of viewers in August.
  • Rumble’s market cap is only about 1% of the estimated valuation of YouTube, which leaves much room for growth.
  • Rumble can attract more video creators due to its generous monetization option. While YouTube only shares 10-15% of ad revenue with users, Rumble shares up to 60% of ad revenue with its users.
  • Rumble is launching its proprietary ad platform, which will allow advertisers to access a portion of the user traffic on Rumble's website, create campaigns, view analytics, and more.
  • The demand for quality alternative media sites will increase, as the global turmoil and local conflicts are becoming more intense.

https://twitter.com/SaaSWiz/status/1573463600852713472Despite the correction that came immediately after RUM rallied on its first day on NASDAQ, this is a great stock to hold for the long term.


Disclosure: We have no position in any of the securities mentioned. We wrote this article ourselves, and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is for informational and educational purposes only and does not provide investment advice.

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