What Happened?

Shares of video sharing platform Rumble (NASDAQGM:RUM) jumped 3.4% in the morning session after it gained attention as Vice President JD Vance announced he would be hosting "The Charlie Kirk Show" live on Rumble. 

The announcement brings a high-profile political figure to the platform, which could attract more users and content creators. The news comes as the broader social media landscape experiences shifts, highlighted by a separate announcement from President Donald Trump about reaching a deal concerning TikTok. While that news, posted on Truth Social, impacted other social media stocks like Snap and Meta, Rumble benefited from the direct engagement of a prominent political figure on its own platform.

After the initial pop the shares cooled down to $7.53, up 3% from previous close.

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What Is The Market Telling Us

Rumble’s shares are extremely volatile and have had 52 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock dropped 3% on the news that markets pulled back, reversing early gains, as investor sentiment remained cautious despite a softer-than-expected inflation reading. Stocks rose in the morning session after an unexpected drop in the Producer Price Index (PPI) for August signaled easing inflation and raised expectations for a potential Federal Reserve interest rate cut. The U.S. Bureau of Labor Statistics reported that the PPI, which measures wholesale prices, edged down 0.1% last month, contrary to analyst expectations for a 0.3% rise. This data gives the Federal Reserve more flexibility to consider lowering interest rates to stimulate the economy.

Rumble is down 39.3% since the beginning of the year, and at $7.53 per share, it is trading 53.7% below its 52-week high of $16.27 from December 2024.

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