Rumble Stock Soars 133% in a Week. Here's Why.

2 min read | December 26, 2024 06:19 PM PST | By Team Kalkine Media

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Rumble Stock Soars 133% in a Week. Here's Why. — Image source: Shutterstock

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Highlights

Rumble stock surged 34.6% on Wednesday, marking a 133% increase over the last week.

The surge follows news that Rumble is set to receive a $775 million investment from Tether, the company behind the USDT stablecoin.

The deal, which involves Rumble selling new stock to Tether at $7.50 per share, is fueling meme stock momentum and driving speculative investor interest.

Rumble (NASDAQ:RUM) stock is experiencing explosive growth, up 34.6% as of 11:45 a.m. ET on Wednesday, continuing a remarkable 133% surge over the last week. The surge follows the announcement of a significant investment deal with Tether, the company behind the popular Tether stablecoin (USDT), which has sparked renewed interest in the streaming-video platform’s stock.

Rumble revealed last Friday that it will sell $775 million in new stock to Tether at a price of $7.50 per share. The deal is a crucial cash injection for Rumble, with $250 million of the funds being allocated to the company’s operations and growth initiatives. The remaining $525 million will be used to buy back shares from other large investors, further strengthening the company’s financial position.

While the deal provides much-needed capital for Rumble, it is the meme stock momentum and the tie-in with cryptocurrency that is driving the stock’s meteoric rise. The investment has turned Rumble into a speculative play for many investors, who are hoping for continued gains from the company’s newfound connection to the cryptocurrency space.

What’s Next for Rumble?

The surge in Rumble’s stock price has largely been driven by speculative enthusiasm surrounding the Tether investment, rather than any direct improvement in the company’s fundamentals. With the deal, Rumble is becoming more closely associated with the cryptocurrency world, a factor that has generated bullish sentiment among some investors.

As the connection between Rumble and Tether grows, there are growing expectations that this could lead to further investments or even a shift toward more crypto-focused business operations. While this remains speculative, the rising enthusiasm could potentially lead to additional short-term gains for Rumble as investors continue to pile in, betting on the streaming platform’s crypto-adjacent future.

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