Rumble Inc. (RUM), a video-sharing platform popular among conservatives, saw its stock price surge 5.09% in intraday trading on Tuesday. This significant uptick comes amid a broader trend of investor enthusiasm for conservative media outlets, highlighted by the recent stellar performance of Newsmax following its initial public offering (IPO).
The rally in Rumble's stock appears to be closely tied to the extraordinary debut of Newsmax on the New York Stock Exchange. Newsmax, another conservative news outlet, saw its shares skyrocket more than 60% on Tuesday, building upon an eight-fold gain from its IPO price on the previous day. This surge in Newsmax's valuation, reaching $16.3 billion, has sparked increased interest in other conservative media platforms like Rumble.
Analysts suggest that the current political climate is fueling investor interest in conservative media stocks. Peter Andersen, founder of Andersen Capital Management, noted, "It's probably a perfect time for Newsmax to launch, simply because of all the volatility in the political arena currently." This sentiment appears to be benefiting Rumble as well, as investors anticipate potential growth in conservative media viewership. With the presidential election cycle underway and former President Donald Trump's return to the White House, platforms like Rumble could see increased user engagement and advertising revenue, potentially driving further stock price appreciation.
