How to buy Rumble Stock: Invest in RUM Shares (2024)

Rumble, the online video platform that went public in 2021, saw its monthly active users skyrocket to 80 million in Q4 2022 around the U.S. midterm elections.

Even though monthly active users were just 48 million in Q1 2023, they were still up 17% Y/Y, with Rumble continuing to attract viewers seeking an alternative to Youtube and Twitch, particularly in its main markets: U.S. and Canada, which account for 69% of all users.

While the platform is yet to turn a profit, Rumble remains an interesting niche growth company, especially in light of the upcoming U.S. elections in 2024.

In this article, we’ll share tips for choosing a stock broker to buy Rumble stock, provide a step-by-step guide to help you make your first purchase, highlight exchange-traded funds (ETFs) with high exposure social media stocks such as Rumble, delve deeper into the reporting structure of Rumble, and more!

How to buy Rumble stock (Step-by-step guide)

1. Choose a good stock broker

Since Rumble is listed on the U.S. markets, you can choose from many brokers to help you purchase. That said, consider the terms offered by each broker and ensure the broker you pick works with residents of your country. Below we highlight three brokers which offer Rumble stock:

2. Open and fund your account

Once you have weighed the pros and cons of each broker, you are all set to open an account. The process usually takes a few days as the broker verifies your identity. After the process is finalised, you must deposit money into your account.

3. Place a “Buy Order”

If you have found an online broker that suits your needs, managed to open an investment account, and made the initial deposit, you are all set to buy your stock. All you have to do is find the share within your chosen broker and place a buy order. For this example, we will use Interactive Brokers Trader WorkStation (TWS).

a) Search for Rumble stock ( ticker “RUM”):

Interactive Brokers Order Entry Window

b) Click “Buy”: 

Interactive Brokers Order Entry Window

c) Choose the order details. Now, it’s time to fill all boxes highlighted below:

Interactive Brokers Order Entry Window

• QTY: Short for quantity. Here you define the number of shares you want to purchase;
• Type of order: By default, Interactive Brokers sets your order type as LMT, short for Limit Order. This is good since it allows you to set a maximum price at which you are willing to buy the shares. The alternative is MKT or market order.
• Limit Amount: Assuming you kept the “LMT” as the type of order, you need to set the maximum price you are willing to pay per share. If you use Market order, you do not need to fill this and will buy at the best available Ask price.
• Order duration is set to DAY by default.

d) Place the order: Finally, click “Submit”, and a new window will show up. Here, you can take a final look at all the details, including the commissions, before clicking “Transmit”:

Interactive Brokers Order Confirmation Window

ETFs – an alternative way to gain exposure

ETFs allow you to gain exposure to a dozen or even hundreds of companies with a single investment. ETFs can be a good option if you:

• Want to complement your Rumble position with similar companies;
• Want to limit your portfolio volatility (ETFs invest in many companies operating in different lines of business, limiting your exposure to idiosyncratic risks);
• Are interested in following a specific theme in your investments (social media stocks, communication services shares, etc.); 

Considering Rumble is a small capitalisation company (around $2.4 billion market cap), few ETFs hold the stock, and the ones that do only allocate a small percentage of their assets to Rumble. That said, some ETFs you may want to consider are:

• Global X Social Media ETF (ticker SOCL) tracks 44 social media companies, with Meta Platforms the biggest holding at ~13%, followed by Naver at ~9% and Tencent at ~9%. Rumble weighs just ~0.30%. The ETF distributes dividends, and the expense ratio stands at 0.65%.
• Communication Services Select Sector SPDR Fund (ticker XLC) tracks 23 communication services companies but is heavily tilted to the top two names – Meta Platforms at ~25% and Alphabet at ~21%. The ETF distributes dividends, and the expense ratio stands at 0.1%. This ETF does not expose you to Rumble but lets you invest in the same industry (communication services).

Rumble’s Financials and Performance

Once you have purchased Rumble shares, it is a good idea to keep track of how the company and its competitors are doing. Doing so will give you greater insight into whether to add to your position, hold it, or sell it to pursue better opportunities elsewhere.

Apart from the investor relation section (available here), there are specialised platforms to help you understand how Rumble is doing from a financial perspective. One platform you can use is Koyfin – you can access Company overviews, Key statistics, Financials, Transcripts, and more! Get a 20% discount on Koyfin.

For example, Koyfin allows you to get a quick handle on how the company’s revenues and margins (as measured by gross profit) are doing:

Koyfin financial analysis tool

While such platforms cannot substitute your research 100% of the time, they can be useful tools in the research process, saving you time and providing new investment ideas.

Rumble Overview

The go-to place to find up-to-date information on the company is its investor relations section, available here. Below we will provide a quick overview of the company’s operations.

Considering Rumble is not yet profitable, operational metrics to watch are typical for growth companies and some distinctive for Rumble. You should pay attention to the following:

• Revenue/expense growth
• Minutes watched per month
• Hours of uploaded video per day
• Global monthly active users
• Cash position

Revenue/expense growth is a typical metric to pay attention to, especially for companies in the early stages of their development. In Q1 2023, revenue grew 336% Y/Y, split between:

• Advertising – 81% of revenue;
• Licensing and other – 19% of revenue;

Expenses increased even faster, at 518% Y/Y in Q1 2023, highlighting the company’s growth profile. Ideally, as Rumble matures, revenue growth should outpace expense growth.

Minutes watched per month (MWPM) is a Rumble-specific indicator the company reports. It shows the aggregated number of minutes users have spent watching Rumble videos in a given month. While MWPM is an estimate based on internet bandwidth usage (and, as such, is prone to errors), Rumble sees it as a good proxy for user engagement with the platform. In Q1 2023, MWPM stood at 10.8 billion minutes, up 3% Y/Y.

Hours of uploaded video per day, as MWPM above, is a business metric distinctive for Rumble. It shows the aggregate hours of uploaded video for each calendar day. Hours of uploaded video per day grew 82% Y/Y in Q1 2023.

Global monthly active users are a standard social media metric. It shows how many users were active on Rumble in a given month. In Q1 2023, it stood at 48 million, up 17% Y/Y.

As you can deduce from the indicators above, the pace of growth of Rumble varies a lot depending on which metric you observe. The latest 10-Q filing contains detailed disclosures and warnings about possible errors in estimating non-standard business metrics.

Last but not least, cash position. Considering Rumble is still operating at a loss, monitoring the available cash resources of the company is vital to infer future growth prospects and the timing of any capital-raising activities. In Q1 2023, the company’s net cash position was about $326.3 million. Dividing it against the current quarterly loss, Rumble can continue to operate at the current run rate for about 11 quarters.

The Bottom Line

To sum it up, here’s what you need to do:

1. Find a suitable stock broker: Make sure the broker works with residents of your country. Consider the fees and market access of the broker should you choose to diversify with other shares or ETFs as well.
2. Open an account and deposit money: After deciding which trading platform to use, you must go through the account opening process and deposit money.
3. Send a buy order to your broker for the stock you like: That’s the easiest part (the process is intuitive)! After having your brokerage account funded, you just have to place a trade!  
4. Keep track of Rumble’s financial developments: As prices move and new earnings reports are released, the relative attractiveness of Rumble versus other companies may change. Platforms like Koyfin can help you navigate the markets!

We hope that this post addressed some of your concerns. Make sure to do your research to find the best investing strategy for you!

Happy investing!