Rumble (RUM): impressive growth in 2024 and outlook for 2025

The year 2024 was an extremely successfulone for video streaming platform Rumble $RUM, with a 189.8% increase in share price. This growth was driven by strategic partnerships, political events, and investments in cryptocurrencies. However, the company is now facing new challenges that threaten its ability to maintain its high growth rate.

Key growth drivers in 2024

1. Strategic partnerships

- Partnership with Barstool Sports:

- Delivered new content and advertising collaborations, increasing brand awareness and attracting new users.

- Significant collaboration opened Rumble $RUM to a wider audience and diversified content.

2. Political events

- Donald Trump's victory:

- Increased the popularity of political content on the platform, which boosted user engagement.

- Rumble$RUM has become a key venue for right-leaning audiences, attracting new investors.

3. Cryptocurrencies as a growth engine

- Investing in Bitcoin:

- $RUM announced a plan to invest $20 million in cryptocurrencies, which increased investor confidence.

- Tether investment:

- Tether provided Rumble 775 million USD through the purchase of shares at $7.50 apiece.

- These funds were used for growth initiatives as well as share buybacks from large shareholders, which boosted shareholder value.

Challenges and risks in 2025

1. Macroeconomic factors

- Decline in share price:

- Rumble shares lost value at the start of 2025. 15,8 % of their value.

- Inflation concerns and a possible delay in the Federal Reserve's interest rate cuts are weighing on growth stocks.

- High valuations:

- $RUM is valued at 27.4 times expected earnings, increasing risk in negative macroeconomic changes.

2. Monetization and user engagement issues

- User engagement:

- Political content and a focus on cryptocurrencies attract a narrowly focused audience, which can limit broader growth.

- Monetization of the platform:

- The company needs to increase advertising revenue and find new revenue streams to create a sustainable business model.

The future of Rumble

Opportunities

- Support from major investors:

- Tether's investments provide capital to execute growth initiatives.

- Audience Expansion:

- A focus on content diversification and new user acquisition can strengthen Rumble's market position.

Risks

- Dependence on political content:

- If interest in political content wanes, Rumble may lose a significant portion of its audience.

- Competition in video streaming:

- The platform has to face strong players such as YouTube and Twitch who have established user bases and monetization models.

Conclusion

$RUM has had a year of exceptional growth, but 2025 brings challenges in the form of macroeconomic risks and the need to improve the monetization of the platform. Investors should consider the risks associated with high valuations and reliance on a narrow audience.

If the company can increase user engagement, diversify its content and effectively monetise its platform, it has the potential to become a key player in the video streaming space. Conversely, failure in these areas could significantly undermine its growth ambitions.