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Rumble Inc.

Recommendation: Speculative Buy

Entry Date Symbol Recommendation Entry Price (USD) Target 1 (USD) Target 2 (USD) Holding Duration Potential Upside
28 Jun, 24 RUM Speculative Buy USD 5.73 USD 6.41 USD 7.03 17 days 22.7%

Fundamentals

  • Previous Close 7.42
  • Market Cap1892.82M
  • Volume1774157
  • P/E Ratio-
  • Dividend Yield-%
  • EBITDA-131.46726M
  • Revenue TTM80.96M
  • Revenue Per Share TTM0.40
  • Gross Profit TTM -4.36123M
  • Diluted EPS TTM-0.62

Data Powered by EOD Historical Data (“EODHD”).

Company Overview

Rumble Inc. operates video sharing platforms in the United States, Canada, and internationally. The company operates rumble.com, a free-to-use video sharing and livestreaming platform where users can subscribe to channels to stay in touch with creators, and access video on-demand (VOD) and live content streamed by creators. It also operates locals.com, a platform where users can access free content and purchase subscriptions to support creators and access exclusive content in creator communities; Rumble Streaming Marketplace, a patent-pending application designed to enable a first-of-its-kind livestreaming and monetization service for creators; and Rumble Advertising Center (RAC), an online advertising management exchange. The company was founded in 2013 and is headquartered in Longboat Key, Florida.

Key Positives

RUM’s stock moved above weekly Volume Weighted Average Price (VWAP) of 5.56

Leading momentum indicator 14-Day RSI recorded trend reversal, as daily RSI moved above 40.

Key Negatives

Trading below crucial short-term crucial moving averages of 20-Day and 50-Day EMAs

The stock is in long-term bearish trend 

Key Investment Risks

Long-term bearish trend, Foreign Exchange risk, Political risk

Recommendation Summary

Technical Summary

Entry Price Support* Target 1 Target 2
5.73 5.11 6.41 7.03

Data Source: REFINITIV, Analysis: StockNextt

*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.

Key Reasons for Speculative Buy

Technical Observation (on the daily chart): 

RUM's stock price has discovered a vital lifeline at the lower end of a potential pole and flag pattern on its daily chart, hinting at a potential reversal in the near term. As a result, this upward momentum is anticipated to persist in the short term, with a higher likelihood of continued gains. Furthermore, the stock is on the verge of reclaiming its simple moving average (SMA). Moreover, the 14-period Relative Strength Index (RSI) has begun to reverse its downward trajectory and is now trending upwards, providing additional support for the bullish bias.  

As per the mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Rumble Inc.  (NASDAQ: RUM) at its closing price of USD 5.73 as of Jun 27, 2024. 

Key Financials in Pictures

Income Statement

Balance Sheet

Change in Cash

Total Operating Cash

Data Powered by EOD Historical Data (“EODHD”).

Peer Comparison

Sector: Technology Industry: Software - Application

Company Change (USD) Price (USD) Trailing PE (x) Forward PE (x) Price Sales TTM (x) Price to Book Value (x) Enterprise Value to Revenue (x) Enterprise Value to EBITDA (x)
RUM
Rumble Inc.
-0.145 1.95% 7.28 - - 24.44 7.90 21.86 -13.5434
CRM
Salesforce.com Inc
1.65 0.49% 338.88 100.89 27.47 7.42 4.34 7.44 26.81
SAPGF
SAP SE
0.05 0.02% 245.50 76.28 22.88 5.61 3.84 5.59 26.18
SAP
SAP SE ADR
1.52 0.62% 245.97 75.80 22.37 5.62 3.75 5.51 25.79
INTU
Intuit Inc
-5.88 0.90% 643.93 55.56 32.68 11.28 10.07 11.62 40.11

Data Powered by EOD Historical Data (“EODHD”).

Disclosures:

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.  

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Past performance is neither an indicator nor a guarantee of future performance. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is of Jun 27, 2024. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations 

CMP: Current Market Price 

SMA: Simple Moving Average 

RSI: Relative Strength Index 

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

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