Rumble Inc. saw its shares decline by 4.07% today, following the presidential debate featuring Vice President Kamala Harris and former President Donald Trump. The general consensus among media outlets seemed to favor Harris as the victor of the debate.
As a result, Rumble’s stock had dropped by 6.7% by 2:04 p.m. ET. Similarly, Trump Media & Technology Group, which operates Trump’s social media platform Truth Social, also experienced a downturn, with its shares falling 12.9% at the same time.
Rumble’s Challenges
Rumble and Trump Media’s stock prices are often seen as proxies for Donald Trump’s political influence and the support of his followers and the conservative movement at large.
With Trump perceived as the debate’s loser, investors are concerned about the potential negative impact on Rumble. The platform heavily relies on content from conservative voices supportive of Trump and advertisers targeting that audience.
According to a betting average from RealClearPolitics, based on data from various markets, Donald Trump’s odds of winning the presidency decreased from 52% yesterday to 47% today, marking a significant shift in just one day.
While betting markets may not always predict outcomes accurately, they do indicate a belief that Trump’s electoral prospects have weakened following the debate.
Implications for Rumble
Founded in 2013 as an alternative to YouTube, Rumble’s relevance has become increasingly tied to Trump’s political presence, similar to other conservative platforms like Gab and Parler.
Conservatives have turned to these platforms to avoid the perceived oversight and restrictions of mainstream social media.
Despite being a small company, Rumble reported $79 million in revenue over the last four quarters and faces significant financial challenges, with an operating loss of $150 million during the same period.
In light of YouTube’s dominance in the user-generated video space, Rumble faces an uphill battle in achieving scale and profitability, especially if Trump’s campaign loses momentum.
Investors should anticipate that Rumble’s stock will continue to react to developments in the election.
A Second Chance at a Profitable Investment
Do you ever feel like you’ve missed out on investing in the most successful stocks? If so, you’ll want to pay attention.
Occasionally, our team of expert analysts issues “Double Down” stock recommendations for companies they believe are poised for significant growth. If you’re concerned that you may have missed your opportunity to invest, now is the ideal time to act before it’s too late. The numbers speak for themselves:
Nvidia: A $1,000 investment when we doubled down in 2009 would now be worth $280,262!*
Apple: A $1,000 investment when we doubled down in 2008 would now be worth $41,639!*
Netflix: A $1,000 investment when we doubled down in 2004 would now be worth $363,277!*
Currently, we’re issuing “Double Down” alerts for three outstanding companies, and opportunities like this may not come around again soon.
Discover three “Double Down” stocks ›
*Stock Advisor returns as of 09/11/2024
