Rumble (NASDAQ:RUM) Shares Gap Down on Disappointing Earnings

Shares of Rumble Inc. (NASDAQ:RUM) gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $8.17, but opened at $7.25. Rumble shares last traded at $7.4060, with a volume of 1,076,606 shares changing hands.

The company reported ($0.12) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.03). Rumble had a negative net margin of 81.32% and a negative return on equity of 39.76%. The firm had revenue of $25.46 million during the quarter, compared to the consensus estimate of $25.98 million. During the same quarter in the prior year, the business posted ($0.01) earnings per share. The firm’s quarterly revenue was up 7.6% on a year-over-year basis.

Wall Street Analyst Weigh In

Separately, Weiss Ratings raised shares of Rumble from a “sell (e+)” rating to a “sell (d-)” rating in a report on Monday, April 27th. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the company presently has a consensus rating of “Sell”.

Institutional Trading of Rumble

Institutional investors have recently bought and sold shares of the stock. Neo Ivy Capital Management purchased a new position in shares of Rumble in the third quarter worth $1,563,000. Monaco Asset Management SAM acquired a new stake in shares of Rumble during the third quarter worth $724,000. Vanguard Group Inc. grew its holdings in shares of Rumble by 1.4% during the third quarter. Vanguard Group Inc. now owns 8,934,542 shares of the company’s stock valued at $64,686,000 after buying an additional 122,788 shares during the last quarter. Arete Wealth Advisors LLC purchased a new stake in shares of Rumble during the third quarter valued at $136,000. Finally, AXQ Capital LP increased its position in shares of Rumble by 66.7% in the 4th quarter. AXQ Capital LP now owns 49,845 shares of the company’s stock valued at $315,000 after acquiring an additional 19,938 shares during the period. 26.15% of the stock is currently owned by institutional investors and hedge funds.

Rumble Stock Performance

The company has a market cap of $3.32 billion, a PE ratio of -23.98 and a beta of 1.02. The stock has a 50 day moving average of $5.97 and a 200-day moving average of $6.18.

About Rumble

Rumble Inc operates a video-sharing platform designed to offer creators and audiences an alternative to traditional social media and streaming services. The company’s primary business activities include hosting, distributing and monetizing user–generated and professional video content. Through its platform, Rumble enables content creators to retain a higher share of advertising revenue and maintain greater control over their intellectual property, while offering viewers open access to a wide range of videos spanning news, sports, entertainment and educational programming.

In addition to its core video platform, Rumble provides cloud–based video hosting and delivery services via Rumble Cloud, a content–delivery network (CDN) designed to support high–volume streaming and storage.