Why Rumble Stock Slipped Today

Actions of rumble (ROM -4.07%)the social media site that is seen as a conservative version of YouTube, have slipped today, apparently in response to last night’s presidential debate between Vice President Kamala Harris and former President Donald Trump. Most media outlets seemed to have Harris as the winner.

In response to the news, Rumble shares were down 6.7% at 2:04 PM ET. Travel companion Trump Media and Technologywhich owns the Trump Truth Social media site, also fell on the news, down 12.9% over the same time.

Image source: Getty Images.

Rumble gets agitated

Stocks like Rumble and Trump Media trade to some extent as avatars of the influence of Donald Trump and his followers and the broader political movement.

With Trump widely seen as the loser of last night’s debate, investors believe that will have a negative impact on the Rumble, which is heavily dependent on the content of conservative, pro-Trump voices and the advertisers willing to market to them.

According to a RealClearPolitics betting average taken from multiple betting markets, Donald Trump’s odds of winning the presidency have dropped from 52% yesterday to 47% today, a relatively large swing in a single day.

Betting markets aren’t necessarily accurate, but they do reflect the belief that Trump’s chances of winning have diminished after last night.

What it means for the Rumble

Rumble was founded in 2013 as an alternative to YouTube before Trump became a political figure, but like other conservative sites like Gab and Parler, its relevance is now closely associated with Trump.

Conservatives have sought out such sites to escape the scrutiny and restrictions of multiple social media channels.

Rumble is still a small company with $79 million in revenue over the past four quarters and is deeply unprofitable with an operating loss of $150 million during that time.

Given YouTube’s dominance of the user-generated video market, Rumble appears to have difficulty gaining traction and becoming profitable, especially if Trump’s campaign falters.

Expect the stock to continue to move on election news.