Rumble stock (NASDAQ:RUM) was rumbling on the market Thursday, but not for the right reasons. The ambitious internet video startup had its share price fall by over 13% on the day after being labeled a bad stock by a pundit and disclosing very dismal financials.
What Happened to Rumble Stock?
The bearish analysis was the more immediate of the two variables. Edwin Dorsey of The Bear Cave newsletter wrote a piece headlined “Problems at Rumble” on Thursday morning.
Rumble is marketed as a YouTube-like service for social media users who believe that conventional video sites filter and limit material unjustly.
However, Dorsey pointed out that the firm is pulling in modest amounts of income while paying significantly for content from divisive political and media figures such as Tulsi Gabbard and Glenn Greenwald.
So, what now?
Dorsey’s removal comes only one day after Rumble submitted paperwork for the sale of common stock and warrants from itself and current shareholders.
The market is concerned not so much that Rumble stock (NASDAQ:RUM) is going to the well for more funding, and existing investors are cashing out; rather, Rumble announced the present situation of its finances, which are quite dismal. The firm earned just $8.4 million in sales during the year’s first six months. Expenses of over $10 million more than offset this.
While it is understandable that early-stage firms struggle with profitability, the most promising ones generate considerably more than $8 million per six months. Rumble stock (NASDAQ:RUM) has yet to demonstrate that it can prosper as a publicly listed business, and if its underperformance persists, it may face more share-price drops.
Featured Image – Megapixl © Timonschneider
Author Okoro Chinedu 
