Financial Insights That Matter
Wedbush analyst Scott Devitt reiterated the Neutral rating on Rumble Inc. (NASDAQ:RUM) on Tuesday, lowering the price forecast from $13 to $10.
Yesterday, the company reported fourth-quarter sales of $30.20 million (+48% year over year), beating the analyst consensus estimate of $29.73 million. Average Revenue Per User for the fourth quarter was $0.39, compared to $0.33 in the third quarter, an increase of 18%.
For the first quarter, the company expects at least 25% revenue growth year over year.
Read Next: US Adds 50 Chinese Entities To Export Restriction List Curtailing Access To Nvidia, AMD Chips
The analyst expresses optimism about Tether’s recent investment in Rumble. This investment will enable the company to focus on key initiatives.
Per Devitt, these initiatives include expanding internationally by leveraging Tether’s global presence.
It will also allow Rumble to onboard Tether’s portfolio companies to Rumble Cloud.
Additionally, the investment will enhance Rumble’s standing in the crypto community, particularly with the development of Rumble Wallet, the analyst writes.
Finally, the investment will support efforts to drive progress toward achieving adjusted EBITDA breakeven.
Devitt has revised their first-quarter estimates, reflecting more moderate expectations for ad revenue and user growth. The analyst now forecasts revenue of $23.6 million, a 33.1% year-over-year increase, down from the previous estimate of $30.2 million.
The adjusted EBITDA estimate has also been lowered to -$12.1 million, from -$7.0 million.
While the near-term outlook is reduced, the analyst writes that the company has a strong long-term opportunity to increase average revenue per user to match industry peers, while continuing to grow in the cloud business.
The analyst awaits further evidence of sustainable ARPU improvements and remains focused on user retention as election tailwinds wane.
Price Action: RUM shares are trading lower by 0.37% to $8.00 at last check Wednesday.
Read Next:
Photo via Shutterstock.
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas dailyplus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Get the latest stock analysis from Benzinga?
This article Rumble’s Crypto Presence Set To Strengthen Following Tether’s Recent Investment: Analyst originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
#1a73e8;">Boost Your Financial Knowledge and Achieve Stability
Discover a growing online community dedicated to delivering financial news, tips, and strategies designed to help you manage money effectively, save smarter, and grow your investments with confidence.
#1a73e8;">Top Financial Tips for Saving and Investing
- Personal Finance Management: Master the art of budgeting, expense tracking, and building a strong financial foundation.
- Investment Opportunities: Stay updated on market trends, learn about stocks, and explore secure ways to grow your wealth.
- Expert Money-Saving Advice: Access proven techniques to reduce expenses and maximize your financial potential.