Shares of Rumble (NASDAQ: RUM), the right-wing competitor to YouTube, were moving higher today after the company scored a new customer for its fledgling cloud business.
The news shows the company could build a significant revenue stream to complement its video-sharing platform.
The stock closed up 9% on the news.
Image source: Getty Images.
Rumble's cloud is growing
This morning, Rumble announced that online retailer Sticker Mule, which sells custom merchandise, was becoming a Rumble Cloud client.
The retailer said it's moving its artificial intelligence (AI) processing to the Rumble Cloud, using Rumble's existing Nvidia H100 inventory to run its workloads. Sticker Mule had been a regular advertiser on Rumble, so the expansion to the Rumble Cloud makes sense. Rumble Cloud is a relatively new business, having opened up to the public this March, so every new customer it gets is a sign that it's gaining traction.
Rumble Cloud is competing with large-scale cloud infrastructure companies like Amazon and Microsoft, but it sees its commitment to a free and open internet as an edge.
Sticker Mule CEO Anthony Constantino said of the move: "It's a natural fit. Our customers are expressing themselves when they design their merch, and it's why people are drawn to Rumble also -- because of their commitment to free speech."
What's next for Rumble?
As a conservative platform popular with Trump supporters, Rumble's fortunes seem closely tied to the election, as a Trump victory could drive more business and attention to its platform.
The company also announced progress in growing its cloud business in its most recent earnings report, and that could be a valuable source of profits for the company, as it's been a highly lucrative business for the big cloud infrastructure giants. Rumble is still small, with just $22.5 million in revenue in its most recent quarter, and its cloud business is likely just a fraction of that.
Keep your eye on the upcoming election and further news on the cloud business, as that's likely to move the stock in the coming weeks.
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