Rumble Stock Drops Pre-Market After Earnings Miss But CEO Bets On Trump Comeback: Retail Cautiously Optimistic

Rumble Inc. ($RUM) was trading down over 8% in pre-market hours on Wednesday after reporting third-quarter results that missed Wall Street’s expectations. 

The Trump-linked video-streaming platform posted a loss of $0.15 per share, wider than the forecasted $0.12 loss, with revenue coming in at $25.06 million versus the $29.25 million analysts had anticipated.

Despite these numbers, CEO Chris Pavlovski remained optimistic about the company’s future outlook, citing a boost in engagement fueled by the election and a shift away from traditional media. 

He described the 2024 U.S. election as a turning point, calling it a “nail in the coffin for traditional media” and positioning Rumble as the new leader in independent media. 

“The American people have spoken. Cancel culture is dead. Free Speech is now mainstream, and Rumble is in the driver's seat with the best lineup of independent creators with the best economics," Pavlovski stated.

The CEO is also bullish on Rumble’s growing enterprise and government interest, which he anticipates will accelerate with Donald Trump’s return to the White House. He described potential partnerships with large clients as “transformative” for future revenue. 

Rumble Cloud, which recently partnered with the Miami Dolphins and Hard Rock Stadium, could significantly expand the company’s enterprise reach amid increasing interest in alternative media.

Further fueling his optimism is Rumble Premium, the platform’s ad-free subscription service with exclusive content. Pavlovski highlighted the “stickiness” of the Premium service, viewing it as a reliable source of recurring revenue as more users gravitate toward independent, ad-free media options.

Retail sentiment around the stock had dipped to the ‘bullish’ territory from ‘extremely bullish’ ahead of the third-quarter results announcement after the bell on Tuesday.  

Some users on Stocktwits are forecasting stronger Q4 earnings for fiscal 2024, driven by increased activity around election day and the impact of Trump’s victory being factored in.

“We broke records on Election Night,” Pavlovski highlighted, noting that on Nov. 5, Rumble set all-time highs for ad revenue, new Premium subscribers, and peak live viewers. 

Rumble’s Q3 metrics reflect this recent growth in user engagement with monthly active users (MAUs) rising to 67 million from 53 million in the prior quarter. 

Although average revenue per user (ARPU) decreased from $0.37 to $0.33, Pavlovski attributed this to rapid user growth outpacing the company’s monetization efforts, with further revenue potential on the horizon.

Rumble’s stock has gained 43% year-to-date and is up 14.8% since Trump’s recent election victory.

For updates and corrections email newsroom@stocktwits.com.

Read more: Alibaba, JD, Baidu Stocks Slip As Trump Mulls China Hawks For Cabinet, But Retail Stays Upbeat

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