Today's significant surge in Rumble's stock value can be attributed to various factors.
Today's significant surge in Rumble's stock value can be attributed to various factors.
The shares of Rumble (RUM dropping by 1.10%) experienced an upturn today, continuing its trend of support in the wake of President-elect Trump's victory on Tuesday last week. This rise was mirrored in several other stocks categorized as the "Trump trade," including Tesla and digital currencies like Bitcoin. There wasn't any significant company-related news released regarding Rumble, a conservative alternative to YouTube, but there was a potential factor that could have boosted the stock's value.
Rumble saw a 18% surge in its stock price for the day.
Rumble is backed by a prominent figure
Rumble saw a surge in after-market trading on Tuesday, but this momentum was short-lived, as the stock ended up in the red on Wednesday, suggesting that investors may have seen it as a "buy-the-rumor/sell-the-news" event.
However, the stock saw a resurgence in its price on Friday, rising even as the S&P 500 index remained relatively stable, as markets adjusted to the election results.
One potential factor that could have contributed to the stock's upward swing today was the news that Dave McCormick, the former CEO of hedge fund Bridgewater Associates, had won the Senate race in Pennsylvania. Reports suggest that McCormick's largest individual stock holding is Rumble, with an estimated value of $4 million.
While this may not directly affect Rumble's business operations, McCormick's status as a hedge fund mogul and now a U.S. Senator could potentially attract more investors to the stock.
Will Rumble's rise continue?
Rumble announced last week that its platform had broken several records on Wednesday night, including the number of live streams, live concurrent viewers, consumption, Rumble Premium subscribers, and advertising revenue. The company also set a new record with 1.79 million concurrent viewers on election night.
Whether this momentum will carry on for Rumble is uncertain, but Trump's election is expected to bring more attention to conservative media platforms, which could be beneficial for the company.
However, Rumble remains a small, unprofitable entity at the moment. In order for the social media stock to become a success, the company will need to prove its worth in the coming days.
Investors might be drawn to Rumble's stock due to Dave McCormick's significant investment, as he holds an estimated $4 million worth of Rumble shares. This financial backing could potentially stimulate further investments in the company.
With Dave McCormick's influence in finance and politics, his investment in Rumble could serve as a powerful signal, attracting more investors interested in the world of finance and investing.