Rumble’s 81% Surge: Buy, Sell, or Hold After Tether’s $775M Bet?

Rumble's Meteoric Surge: A $775 Million Lifeline or an Overvalued Gamble?

Editorial Team (ET)October 4, 2026

The stock market never fails to surprise, and Rumble Inc. (NASDAQ: RUM) is the latest example. Following an announcement that Tether, a blockchain-based digital payment system, will invest $775 million in Rumble, the stock surged an eye-popping 81% in a single day. While this development has undoubtedly injected excitement into the market, it raises a critical question for investors: Is now the time to buy, sell, or hold RUM stock at $13?

Breaking Down the Tether Investment

Rumble’s partnership with Tether is a game-changing move. Tether’s $775 million investment includes $525 million allocated for a self-tender offer of 70 million shares at $7.50 per share, while the remaining $250 million will go towards growth initiatives. Notably, Tether will not nominate any directors to Rumble’s board—a signal that this partnership is more about financial support than operational influence.

For Rumble, the funds provide a much-needed runway to address its ongoing challenges, including user engagement issues and the battle to attract high-profile content creators.

A Closer Look at Rumble’s Financials

Rumble’s revenue has grown exponentially, increasing from $9.5 million in 2021 to $86 million in the past twelve months. However, the growth has not come without turbulence. Monthly active users (MAUs) peaked at 80 million in late 2022 but dropped to 44 million in Q2 2023 before rebounding to 67 million. Similarly, its average revenue per user (ARPU) of $0.33 leaves much room for improvement.

The company remains in the red, with an operating loss of $143 million on $86 million in sales over the last year. Additionally, its high selling, general, and administrative (SG&A) expenses, at 65% of revenue, underscore the inefficiencies in its cost structure.

Valuation: Is RUM Overpriced at $13?

At its current price of $13, RUM stock trades at a staggering 31x trailing revenues. Even based on projected 2025 revenues of $113 million, the stock is valued at 23x forward sales—a premium that’s hard to justify given its track record and industry challenges. In comparison, established tech and media companies often trade at much lower multiples with more robust fundamentals.

Rumble’s past performance also raises red flags. The stock has underperformed the broader market for three consecutive years, delivering returns of -45% in 2022 and -25% in 2023. While the recent Tether investment may be a catalyst for growth, the valuation suggests that much of the optimism is already priced in.

Competitive Landscape: Rumble’s Uphill Battle

Rumble operates in an intensely competitive market dominated by giants like YouTube, BitChute, and Odysee. Attracting and retaining users requires a steady stream of engaging content, which has been a persistent challenge for the platform. Without a significant boost in both MAUs and ARPU, Rumble risks falling further behind its competitors.

The Path Forward: Growth Initiatives

Rumble’s $250 million earmarked for growth initiatives could be a game-changer, provided it’s strategically deployed. Investments in improving content quality, expanding partnerships, and boosting user engagement could help the company close the gap with its rivals. However, these initiatives will take time to yield results, and the market may lose patience if the progress is slow.

Should You Buy, Sell, or Hold?

Buy: If you believe in Rumble’s long-term potential and the transformative impact of its partnership with Tether, buying at $13 could be a high-risk, high-reward play.
Sell: For investors who entered at lower prices, the recent rally presents an opportunity to lock in gains, especially given the stock’s stretched valuation.
Hold: If you already own RUM and are optimistic about its growth initiatives, holding could be a prudent choice. Keep an eye on key metrics like MAUs and ARPU to gauge progress.

Conclusion

Rumble’s recent surge highlights the volatile nature of growth stocks, particularly in competitive sectors like video sharing. While the Tether investment is a positive step, the company faces significant hurdles in improving user engagement, revenue growth, and profitability. At $13, RUM stock appears to have run ahead of its fundamentals, making it a risky bet for cautious investors.

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