Rumble, Inc. RUM revealed that it sent an offer letter to TikTok on Tuesday, and retail investors are sharing their opinions on the move and related stock predictions on social media.
The Details: Rumble on Tuesday posted an offer letter signed by CEO Chris Pavlovski on X, expressing interest in becoming a "cloud technology partner" alongside a consortium of other parties that may be seeking to acquire and operate TikTok inside the United States.
"We are ready to serve as a cloud technology partner. Yesterday, Rumble announced the public launch of the Rumble Cloud, a new infrastructure as a service offering that champions the free and open internet. All data on the Rumble Cloud is stored safely and securely at sites inside of the United States on Rumble's own neutral and independent infrastructure," Pavlovski said in the letter.
Rumble stock was trending on Stocktwits at the time of writing as traders highlighted what a potential acquisition could mean for the video platform and cloud services company:
- "There’s strong bipartisan support to ban TikTok unless the Chinese controlled app meets the requirements as per Congress. I’m 100% for it, TikTok is dummying down Americans with its vulnerabilities. Rum wants to capitalize if this bill passes… HUGE growth potential," Stocktwits user HoneyBadgerOnTheRun posted.
- "This will quickly take revenue from AWS and Google and rip wide open. If you're waiting for a better entry, you're going to miss out," Stocktwits user cgellison said, referring to the Rumble Cloud.
- "14 million shares short feeling trapped. 18% of the entire float….while insiders own 70% of the shares….good luck to the shorts," Stocktwits user Anthonybarnes4 said, pointing to high short interest in the name.
According to data from Benzinga Pro, 18.87% of Rumble’s float (77.58 million shares) is currently being sold short. It’s also worth noting that Rumble shares are moving on above-average volume Tuesday. Rumble’s average session volume is about 5.9 million. Tuesday’s trading volume was hovering around 7.34 million at publication time.
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RUM Price Action: According to Benzinga Pro, Rumble shares were up 17.6% at $7.86 at the time of publication.
Image: Gerd Altmann from Pixabay
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