Shares of Rumble (NASDAQ: RUM) were moving higher today, apparently in sympathy with Trump Media & Technology after yesterday's Trump rally in Madison Square Garden in New York. The two companies, which both serve as social media platforms for conservatives, are closely connected.
As of 1:08 p.m. ET, Rumble stock was up 13% on the news.
Image source: Getty Images.
Are investors sensing a Trump surge?
There wasn't an obvious trigger for Rumble's gains, which came alongside a double-digit jump in Trump Media shares, but investors seem to think yesterday's rally at Madison Square Garden was bullish for Trump's chances in the election.
Rumble has positioned itself as a conservative alternative to YouTube so investors believe the stock would benefit from a Trump victory in the election.
Over the weekend, The Washington Post reported on the Trump campaign's relationship with Rumble, noting, among other things, that it was given exclusive streaming rights for a presidential primary debate last year. In other words, a Trump administration could help elevate the platform, which is much smaller than YouTube and has around 50 million monthly active users.
Today's gains may also be driven by a short squeeze as today's trading volume is already roughly 4 times the average and about 15% of the float is sold short.
What's next for Rumble
Rumble is still small and unprofitable. In fact, revenue fell in its most recent quarter.
The stock is likely to continue to be volatile ahead of the election as it's been in recent months. A Trump victory could propel the stock to significant gains, though if he loses, a pullback seems likely as the business case for Rumble, with declining revenue and losses, seems weak.
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