Is Rumble a good stock to buy?
Have you ever heard of Parler? Well Rumble is another conservative leaning social media platform. People are looking for a platform that allows them free speech. The conservative voice was censored while the left-leaning one wasn’t. This suppression of right-wing conservative voices by social media giants has led to an explosion of up-and-coming social media apps. We have MeWe for Facebook, Parler for Twitter, and now Rumble.com for YouTube. With this going on, Rumble stock price could see a spike. If you want to invest in a video-sharing platform stock that is on the rise, then the Rumble stock (CFVI) could be a good choice.
Is Rumble stock worth buying?
The online video platform Rumble announced that its user base reached a new high in the second quarter of 2022, increasing to an average of 44 million average monthly active users (MAUs) and representing a 76 percent increase compared to the second quarter of 2021.
The company also announced a record for uploaded content in the second quarter of 2022, with users uploading 8,948 video hours per day, representing 283 percent growth versus the same quarter last year. User engagement also continued its extremely strong growth trajectory, with Rumble users watching an average of 8.1 billion minutes per month (MWPM), an increase of 62 percent from the second quarter of 2021.
Rumble currently relies on advertising for revenue, like YouTube and similar platforms. Rumble is highly dependent on ad revenue from clicks and views. Many other companies have reported weak ad revenue in their latest quarterly results. This is a major problem for Rumble, but they are trying to greatly expand their revenues from subscriptions and fees. They bought Locals.com, which enables video creators to offer subscription-based content on Rumble. They also are expanding Rumble Cloud Solutions which earns usage fees and subscription revenue. (Truth Social is on that platform.)
Is Rumble stock a good buy right now?
If you are looking for stocks with good return, CFVI stock can be a bad, high-risk 1-year investment option. As of Aug 26, 2022, the current CFVI stock price $10.08 and the market cap is $385.06M. Rumble stock is currently +4.46% from its 52-week low of $9.63, and -45.57% from its 52-week high of $18.52.
CFVI, which will soon be Rumble, faces many challenges, but I am keeping my buy recommendation. The risk of Rumble stock falling below the redemption price looks minimal, considering its advertising and cloud opportunities. Its huge cash infusion also reduces the risk of Rumble having to dilute its stock to raise more money soon.
How do I buy Rumble stock?
Rumble went public after it partnered with CF Acquisition Corp. VI (CFVI) in December; a merger that valued Rumble at $2.1 billion. The company formed after the merger retained the name Rumble but uses the ticker CFVI on the stock market.
The SEC declared their S-4 effective on August 11. This is a major event because now the SPAC CFVI and Rumble can now finally solicit proxies from shareholders to approve their merger and also approve some other items. Shareholder meetings are now set for September 15. It is expected the merger will be completed soon after the vote.
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