Rumble Stock Surges 253% in a Year: Is There More Room to Run in 2025?

Core Viewpoint - Rumble (RUM) has experienced significant stock growth of 253% over the past 12 months, outperforming the broader Computer & Technology sector and the Internet - Software industry, driven by strong audience monetization and user engagement, particularly during the U.S. presidential election [1][2]. Group 1: Financial Performance - In Q3 2024, Rumble reported a rise in monthly active users (MAUs) to 67 million, which has positively impacted its monetization efforts [2]. - The Zacks Consensus Estimate for Rumble's 2025 revenues is projected at $113.38 million, reflecting a year-over-year growth of 18.49% [13]. - The consensus for 2025 loss per share is estimated at 35 cents, indicating a year-over-year increase of 44.44% [13]. Group 2: Market Position and Competition - Rumble has outperformed competitors like Amazon Web Services (AWS) and Google Cloud, which returned 45.2% and 36.2% respectively over the same period [2]. - The company's cloud services have gained traction, particularly during high-traffic periods like elections, enhancing its appeal to enterprise customers [5]. Group 3: Strategic Partnerships and Expansions - Rumble entered a strategic cloud services agreement with the Government of El Salvador in January 2025, which includes various cloud services, reinforcing its position in the cloud market [6][7]. - In October 2024, Rumble secured Sticker Mule as a cloud client, enhancing its technological credibility through collaboration with NVIDIA [8]. Group 4: Product and Service Development - Rumble launched its app on Xbox in Q3 2024, expanding its video distribution and supporting the independent creator economy [10]. - The introduction of Rumble Premium and exclusive content has driven strong subscriber growth, adding value for both viewers and creators [10]. Group 5: Advertising and Revenue Growth - The dissolution of the Global Alliance for Responsible Media allowed Rumble to secure its first major brand advertising deal, boosting its revenue streams [11][12]. - Rumble increased its advertising inventory by introducing mid-roll ads across various platforms, enhancing user experience and revenue [12]. Group 6: Challenges and Considerations - Despite strong user growth, Rumble's monetization has lagged, with a decrease in Average Revenue Per User from 37 cents in Q2 2024 to 33 cents in Q3 2024 [15]. - Rumble faces intense competition in the cloud services market, which may impact its growth prospects [15].