Why Rumble Stock Was Down as Much as 26% This Week
Shares of video platform Rumble (NASDAQ: RUM) were down 25% this week, as of Friday at 12:30 p.m. ET, and had been down as much as 26% at the worst. This underperformance is further accentuated by the fact that the S&P 500 was up 3.6% for the week, as of this writing, meaning Rumble can't blame poor market conditions for its drop.
The news cycle at the beginning of the week was positive for Rumble. The company had two press releases -- both of which could be positive developments for its video creator community. The first release stated that the Rumble app will now allow livestream notifications, potentially boosting user engagement. And the second announced new capabilities for its advertising platform, which could increase monetization.
The news is important because Rumble needs to make its platform more attractive to content creators. According to filings with the Securities and Exchange Commission on Wednesday, the company only generated $9.5 million in total revenue for the entire year in 2021 because it's still early in its monetization journey. In other words, Rumble may not be as attractive for some content creators compared with its much larger competitor YouTube.
Source Fool.com
