Tether's investment in Rumble to strengthen crypto presence and support growth

From Yahoo Finance: 2025-03-26 14:22:00

Wedbush analyst Scott Devitt lowered the price forecast for Rumble Inc. (NASDAQ: RUM) from $13 to $10, reiterating a Neutral rating. The company reported fourth-quarter sales of $30.20 million, beating analyst estimates. Revenue per user increased to $0.39 in Q4. Rumble expects 25% revenue growth for Q1. Tether’s investment in Rumble will support international expansion and product development.

Devitt revised first-quarter estimates, expecting a 33.1% year-over-year revenue increase to $23.6 million. Adjusted EBITDA estimate lowered to -$12.1 million. Despite near-term challenges, the company has long-term growth potential. The analyst emphasizes the need for sustainable ARPU improvements and user retention as election tailwinds fade. RUM shares are trading at $8.00.

Tether’s recent investment in Rumble will enhance the company’s presence in the crypto community and support key initiatives. The partnership will enable Rumble to leverage Tether’s global reach, onboard portfolio companies, and develop Rumble Wallet. The investment aims to drive progress towards achieving adjusted EBITDA breakeven.

Read more: Rumble’s Crypto Presence Set To Strengthen Following Tether’s Recent Investment: Analyst