Data show that there is a relationship between political events and the stock market, though that relationship isn’t exactly what one might expect. The market isn’t especially affected by which party controls the White House, but it is sensitive to administration changes.
Investors become cautious when a new President takes charge, and the stock market reflects that uncertainty for roughly a year after an election. However, once the uncertainty clears, the market recovers, though the impact on individual stocks can last longer.
For example, Rumble stock has experienced an upswing in investor interest that started around the inauguration of a new US President in 2021. The impact of politics on Rumble stock is still being felt today, more than two years later.
Why the interest in Rumble over the past two years? What is Rumble stock? And what is the current Rumble stock price prediction?
What Is Rumble Stock?
Rumble is a relative newcomer to the world of cloud services, web hosting, and online video. It was founded in 2013, and for its first eight years, it barely registered in terms of monthly active users. That changed in 2021 for a number of reasons, but the biggest was new interest from politically conservative and far-right Americans.
Rumble’s founders wanted to create a platform that could compete with YouTube while remaining aligned with a separate set of goals and objectives. The biggest goal was to protect and promote independent content creators rather than highlighting influencers with large followings.
At first, Rumble’s content resembled that of other social media platforms, with a special emphasis on supporting individual creators. However, after several popular conservative politicians were suspended from mainstream platforms like Facebook and Twitter, they moved to Rumble. Their constituents and fans followed along, and in 2019, Rumble had roughly 1.6 million monthly active users. Within a year, that figure jumped to 31.9 million.
Rumble Stock IPO
By the end of 2021, Rumble’s revenue was up, though the company wasn’t turning a profit quite yet. Then Rumble got a big break. The Trump Media & Technology Group announced that Rumble had been selected as the technology and cloud computing partner for Truth Social – a new social media option that was quickly embraced by far-right groups.
Profitability remained problematic for Rumble, even after Truth Social launched in February 2022. Rumble rolled out its own online advertising platform in August 2022 in an effort to boost its bottom-line results.
The larger user base, new partnerships, and potentially profitable digital advertising service made Rumble an attractive candidate for listing on a public exchange. It caught the attention of a special purpose acquisition company (SPAC). The two merged, and Rumble began trading on the Nasdaq in September 2022. Over the past six months, Rumble stock delivered 8.5 percent in gains.
Will Tucker Carlson Boost Rumble Stock?
Rumble stock has managed to stay out of the news since the start of the year, but it turned into a hot topic once more on April 24, 2023. The media reported that Tucker Carlson, one of the most outspoken conservative political commentators, was being separated from Fox News – his home since 2016.
It appears that Carlson’s fans expect him to turn up on a Rumble site next because Rumble stock went up by nearly six percent after the staffing change was announced.
Investors’ expectations are well-founded, considering another Fox News personality, Dan Bongino, left the network a few days earlier. Bongino immediately launched his Rumble channel, elevating Rumble’s brand.
If Carlson decides to post his political commentary on Rumble’s video platform, Rumble’s monthly average users are likely to increase dramatically. That means more advertising opportunity, improved revenues, and perhaps a tidy profit. Shareholders want to be a part of that growth.
How To Buy Rumble Stock
Though Rumble stock is relatively new to the Nasdaq, it isn’t more difficult to buy Rumble stock than to buy stock in any well-established publicly-traded company. Most online brokerage firms offer low-cost/no-cost trades, so it is a simple matter of opening and funding an account.
When funds are available in the brokerage account, investors can choose between a market order and a limit order. Investors can buy Rumble stock now at the current market price, referred to as a market order, or they can set their account to make the purchase automatically once Rumble’s stock price reaches a predetermined price threshold. This is a limit order.
Where To Buy Rumble Stock
Investors who have yet to complete trades independently often struggle with selecting the best brokerage firm. Some firms are too big, and others are too small. Some have an extensive library of tools, resources, and educational materials suitable for beginners, while others expect their clients to come to the table with experience.
In either case, opening an account with one or more of the best automated brokerage firms ensures low or no fees and access to plenty of information for researching top stocks.
Examples of strong self-service trading platforms include Ally Invest, Charles Schwab, E-Trade, Fidelity, Firstrade, Interactive Brokers, Merrill Edge, Robinhood, and TD Ameritrade.
Each has a unique set of advantages and disadvantages. The extensive selection ensures new investors can find a trading platform that caters to their unique needs.
Who Owns Rumble Stock?
Rumble was founded by a Canadian entrepreneur named Chris Pavlovski. Among other special skills, Pavlovski had a knack for raising money before Rumble went public. In May 2021, two major players in the venture capital world invested in Rumble: Peter Thiel and J. D. Vance.
Now that Rumble stock is open to anyone, other big names have gotten onboard. Pavlovski remains the largest shareholder with nearly 40 percent of Rumble’s stock, and the rest is owned by a mix of retail investors and institutions. Examples of institutions that own Rumble stock include the Vanguard Group and BlackRock.
Rumble Stock Price Prediction
Rumble is a small company that generally flies under analysts’ radars, so there isn’t an extensive amount of coverage and few analysts have built out 12-month predictions.
Those that have contributed their insights suggest earnings will decrease by approximately $0.03 per share this quarter, remain flat next quarter, and decrease a total of $0.05 per share for the year. However, next year could bring earnings increases of $0.25 per share, which means the stock price should go up.
One analyst estimated Rumble stock could rise as high as $15 per share over the next 12 months. If accurate, there is an upside of more than 60 percent, which makes Rumble stock a buy.
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