Rumble (RUM 12.59%) stock is posting big gains in Thursday’s trading. The streaming video company’s share price was up 12.9% as of 2:15 p.m. ET amid the backdrop of a 0.2% decline for the S&P 500 index and a 0.5% drop for the Nasdaq Composite index.
Rumble stock is gaining ground today in conjunction with bullish coverage from an analyst. The company’s share price is also getting a boost from reports that President-elect Donald Trump has expanding plans to create a U.S. strategic cryptocurrency reserve.
Rumble stock surges on bullish analyst outlook
In a note published yesterday, Maxim analyst Tom Forte initiated coverage on Rumble stock with a buy rating and a one-year price target of $20 per share. With the stock trading at roughly $12.25 per share as of this writing even on the heels of today’s gains, Forte’s price target implies additional upside of about 63%. Rumble stock is now up roughly 261% over the last year thanks to tailwinds connected to Trump’s presidential election win and news that the company will receive $775 million in investment from the parent company of the Tether stablecoin cryptocurrency.
Rumble is also getting a boost from cryptocurrency news
In addition to the bullish analyst coverage, Rumble stock is climbing higher today thanks to reports that Trump plans to move forward with the creation of a U.S. cryptocurrency reserve. While Trump had previously indicated that he intended to create a state Bitcoin reserve, new reports suggest that he could move to add cryptocurrencies including XRP, Solana, and USD Coin to the project.
Late last year, Rumble made a push into the cryptocurrency space by announcing that it planned to purchase up to $20 million in Bitcoin for its own cryptocurrency reserve. Not long after, it was announced that Tether would be investing $775 million into the streaming video specialist.
With its gains today, Rumble is now valued at roughly $3.5 billion and trades at approximately 30 times this year’s expected sales. So while the company could get additional boosts from positive analyst coverage or development in the crypto space, the business will likely need to deliver strong sales growth and improving margins in order to send its stock higher over the long term.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Solana, and XRP. The Motley Fool has a disclosure policy.
