Rumble has gotten torched over the last six months - since May 2025, its stock price has dropped 21.9% to $6.08 per share. This was partly due to its softer quarterly results and might have investors contemplating their next move.
Following the drawdown, is now a good time to buy RUM? Find out in our full research report, it’s free for active Edge members.
Why Does RUM Stock Spark Debate?
Founded in 2013 as a champion for content creator rights and free expression, Rumble (NASDAQ: RUM) is a video sharing platform that positions itself as a free speech alternative to mainstream platforms, offering creators more favorable revenue-sharing opportunities.
Two Positive Attributes:
1. Skyrocketing Revenue Shows Strong Momentum
Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last four years, Rumble grew its sales at an incredible 92.6% compounded annual growth rate. Its growth beat the average business services company and shows its offerings resonate with customers.
2. Wall Street Expects Impressive Revenue Gains
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite, though some deceleration is natural as businesses become larger.
Over the next 12 months, sell-side analysts expect Rumble’s revenue to rise by 7.8%. While this projection is below its 19% annualized growth rate for the past two years, it is noteworthy and implies the market is baking in success for its products and services.
One Reason to be Careful:
Free Cash Flow Margin Dropping
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
As you can see below, Rumble’s margin dropped by 62.4 percentage points over the last five years. It may have ticked higher more recently, but shareholders are likely hoping for its margin to at least revert to its historical level. If the longer-term trend returns, it could signal it’s in the middle of a big investment cycle. Rumble’s free cash flow margin for the trailing 12 months was negative 60.6%.
Final Judgment
Rumble has huge potential even though it has some open questions. With the recent decline, the stock trades at $6.08 per share (or a trailing 12-month price-to-sales ratio of 15.2×). Is now a good time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More Than Rumble
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