Rumble Inc. Stock Retreats 34% Despite Strong Revenue Outlook and Insider Sales
Shares of Rumble Inc. (NASDAQ:RUM) have experienced a significant decline, retracing 34% in the last month according to a recent report from SimplyWall.st. This pullback has reversed a fair amount of the video-sharing platform’s recent solid performance, though the stock still maintains a 25% gain over the past year.
The retreat comes despite Rumble’s strong revenue projections and places the company among stocks that have seen significant insider sales in recent months. The Florida-based video platform has garnered increased attention following an announcement that President Donald Trump has created an official White House channel on the platform.
High Valuation Metrics Raise Questions
According to SimplyWall.st, Rumble’s price-to-sales (P/S) ratio stands at 47.2x, significantly higher than approximately half the companies in the United States’ Interactive Media and Services industry, which have P/S ratios below 1x. This elevated valuation metric suggests investors may have high expectations for future performance.
While Rumble has been growing revenue at a slower pace compared to other companies in its sector recently, analysts suggest the market may be anticipating a reversal of fortune in future revenue performance. This expectation appears to be supporting the high P/S ratio despite the recent stock price decline.
The company has demonstrated strong historical growth, managing to increase revenues by 6.4% last year while delivering “immense revenue growth” over the previous three years according to the report. Looking forward, analysts estimate 26% annual growth over the next three years, significantly outpacing the industry’s projected 12% growth rate.
Confirming that the Rumble engineering team is also fighting a large DDOS attack that has intermittently affected our services today.
— Chris Pavlovski š“āā ļø (@chrispavlovski) March 10, 2025
Notable Insider Sales Activity
Rumble has also been identified by Insider Monkey as one of the companies that has seen at least $20 million in insider sales recently. The company ranks fourth on their list of stocks with significant insider selling activity this year.
On February 7, three Rumble insiders made several sales of company shares, including one transaction valued at $28.63 million. The company’s CTO, Wojciech Hlibowicki, sold 3,817,165 shares at a price of $7.50 per share, according to the report. Currently, the stock is trading at $8.25 per share, having lost 36.59% since the beginning of the year, while maintaining a 21.48% return over the past 12 months.
Insider Monkey’s research indicates that Rumble has seen seven sales above $20 million year-to-date, with the highest individual sale reaching $28,628,737.50. The company currently has a market capitalization of $2.69 billion.
J.D. Vanceās venture capital firm Narya Capital, established in 2020 with backing from Peter Thiel, invested $25 million in Rumble in May 2021 and secured a seat on Rumbleās board.
— Kimberly āKimā Wexler MA JD (@KimWexlerMAJD) March 8, 2025
Vance also owns a personal stake in Rumble, valued at between $300,000 and $1.25 million. pic.twitter.com/FycEgFlFHM
Financial Performance and Market Sentiment
For the third quarter of 2024, Rumble reported revenue of $25.1 million, representing a 39% increase from the same period in 2023. The company posted a net loss of $31.5 million, compared to a net loss of $29 million in the comparable quarter of 2023. Adjusted EBITDA showed a loss of $23.5 million, which reflects an $11.9 million improvement from the third quarter of 2023.
As of September 30, 2024, Rumble’s balance of cash, cash equivalents, and marketable securities was approximately $132 million. The company operates a free-to-use video-sharing and livestreaming platform, rumble.com, which enables users to subscribe to channels, access video on-demand, and live content.
Rumble also offers a local.com platform where users can purchase subscriptions to support creators and access exclusive content. The company recently gained additional attention with the announcement that President Donald Trump has created an official White House channel on the platform.
Analyst Outlook and Market Context
According to TipRanks data cited by Insider Monkey, three analysts maintain an average “Buy” rating on Rumble stock, with a price target of $16.50. This target suggests a potential 100.00% upside from the current price level.
The insider sales at Rumble come amid a turbulent period for the U.S. stock market, fueled by the Trump administration’s shifting decisions on the start date for new tariffs. President Donald Trump recently signed executive actions that delay tariffs on all products from Mexico and Canada covered by the USMCA free trade treaty for nearly one month.
Major U.S. indexes have seen declines, with blue-chip companies falling by 428 points or 0.99%, the broader market index losing 1.78%, and the NASDAQ entering correction territory, down 10.4% from its record high on December 16. Many analysts have revised their U.S. stock market predictions, suggesting that achieving strong earnings in 2025 may prove more challenging than previously anticipated.
