Shares of Clutter (NASDAQ: RUM) rose today as it continued to receive a wave of support following President-elect Trump’s victory last Tuesday. It was one of many stocks in the so-called “Trump trade” that rose in value on Monday Tesla and cryptocurrencies such as Bitcoin also popped. There was no major company-specific news on Rumble, which is essentially a conservative alternative to YouTube, but there was one item that could have boosted share price gains.
Rumble shares closed 18% higher that day.
A person viewing social media on their phone and computer.
Image source: Getty Images.
Rumble has significant backing
Rumble initially rose in aftermarket trading last Tuesday, but the stock finished in the red on Wednesday, a sign that investors may have seen it as a buy-the-rumor/sell-the-news type event.
However, after the momentum built in the stock on Friday, Rumble jumped today, as did the S&P500 The index was nearly flat as markets continued to tremble after the election.
One piece of news that may have given stocks a boost today is that Dave McCormick, formerly the CEO of the hedge fund Bridgewater Associates, won the Senate race in Pennsylvania. According to reports, Rumble is McCormick’s largest individual stock holding, of which he owns an estimated $4 million.
While that fact shouldn’t have a direct impact on Rumble’s business, it could attract more investors to the stock, considering McCormick is both a hedge fund mega-millionaire and now a U.S. Senator.
Will Rumble’s momentum continue?
Rumble reported last week that its platform broke multiple records on Wednesday evening, including the number of live streams, live concurrent views, consumption, Rumble Premium subscribers and advertising revenue. The company also set a record of 1.79 million concurrent viewers on election night.
It’s unclear whether that momentum will continue for Rumble, but Trump’s election numbers will benefit the company as it will likely draw more attention to conservative media platforms.
Still, Rumble is small and unprofitable today, so the company still has a lot to prove for the future social media stock be a winner.
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Tesla. The Motley Fool has one disclosure policy.
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