Should you Invest in Rumble?
Rumble, a video-sharing app similar to YouTube, has seen immense growth in users and user engagement over the past year. Rumble reports its average monthly active users mushroomed from 1.6 million in the third quarter of 2020 to 36 million in Q3 2021, a scorching 2,150% increase. Rumble also says "viewer engagement" reached 8 billion minutes of video watched monthly as of Q3 2021, an approximate 4,400% surge from Q2 2020. The company's mission statement and general tone appears likely to resonate with users of Truth Social as well. Should you invest in CFVI stock after the announcement and what’s the long-term forecast for Rumble?
What makes the Rumble social media appealing?
Rumble.com had humble beginnings. However, after the US elections in 2016, it has seen a lot of traffic being driven to it by right-wing conservatives. People who visit the sides for the political videos and podcasts. Some of its creators include Dan Bongino (former Secret Service agent) who is now the investor in the platform, conservative author Dinesh D’Souza, writer John Solomon, Rep Devin Nunes, and Pro-Trump commentators Diamond and Silk.
There has been an increasing rise in voices against the censorship policies of Twitter, Facebook and YouTube across the globe. This led to a lot of these creators and their audiences have already moved to Rumble and it won’t be long before others follow suit.
Youtube was acquired by Google in 2006 for 1.65 billion USD in 2006. Its revenue at that time was 15 million USD per year. In 2019, YouTube’s revenues stood at 15 billion USD (10% of Alphabet’s revenue). Rumble is generating 50-60 million unique visitors every month. Out of the 2 billion YouTube users, at least 35-40% of the population identify themselves as conservative. Rumble’s last known revenue was 106.4 million USD. If about 800-900 million users can potentially migrate to Rumble, which will jump its revenue by 10x.
Given the massive market opportunity and the growing anger against Big Tech among conservatives, it might make sense to invest in Rumble social media stock by buying CFVI.
Should you invest in Rumble social media stock right now?
To go public, Rumble intends to merge with an investment company initially created by Cantor Fitzgerald, a decades-old Wall Street bank. The deal with CFVI valued Rumble at an initial enterprise value of $2.1 billion. It hopes to complete the process by the second quarter of this year.
Rumble has done a good job of carving out a specific niche with an innovative unique value proposition. However, attempting to steal a large proportion of the market from YouTube will be no easy task.
As always, we recommend that you wait for at least two quarterly earnings reports to be published before considering investing. Much will be made of how Rumble generates profits as it enters into life as a publicly-traded company, and investors will be keeping a close eye on the balance sheets.
How to buy Rumble stock?
The first step to buying Rumble stock is opening an account with a broker — a financial services firm that buys and sells stocks on your behalf. Brokerage firms typically provide a wide range of investment options, including stocks, bonds, mutual funds, exchange-traded funds (ETFs) and more. Fees and investment selections also differ within each brokerage, though many firms now offer commission-free trades on stocks, like Robinhood and eToro. On eToro, you can buy $SHOP or other stocks and pay ZERO commission!
Depending on your financial position, risk tolerance and overall investment goals, you can decide the amount of money you want to invest. Assume that if you buy Rumble today (through CFVI stock), you’ll pay near the market price.
