Based in Texas, automotive e-commerce platform RumbleOn (NASDAQ:RMBL) might be a familiar name to some motorcycle enthusiasts. On the other hand, many retail investors may never have heard of the company and RMBL stock.
That’s a shame, as RumbleOn has a major presence in its chosen niche market. As the company states, RumbleOn is America’s largest retailer of powersports vehicles and provides the first omni-channel customer experience in powersports.
As we’ll see, RMBL stock provided exciting twists and turns for nimble traders in early 2021. For the past nine months, however, the stock has been frustratingly range-bound.
However, a long base could send the stock high into space, as they say. So, put on your helmet and get ready to rumble as this little powersports business just might have hyper-growth potential.
A Closer Look at RMBL Stock
First things first: we should note that RumbleOn announced a 1-for-20 reverse stock split on May 19, 2020. So, be sure to factor that in as we analyze the stock price’s history.
During the first few months of 2021, Reddit traders were targeting small companies for epic short squeezes. It’s possible that RumbleOn was one of those companies. Otherwise, it would be difficult to explain why RMBL stock made not just one, but two round trips between $30 and $50. Those were wild times, no doubt about it.
Thankfully, the stock stabilized and settled into a range starting in April 2021. Time and again, the share price has gravitated back to the mid-$30s. However, thrill seekers probably don’t want to see RMBL stock stuck in a range. Could a jailbreak be just around the corner, then?
Keep your eye on the stock’s daily trading volume for clues. A high-volume breakout above $40 could signal an imminent return to $50 and beyond.
Not Just Bikes, but an Experience
Anyone who thinks that RumbleOn is just another motorbike seller needs to look deeper into what the company actually does. It could be argued that RumbleOn is an e-commerce business just as much as it is a powersports company. In particular, RumbleOn uses technology to aggregate and distribute pre-owned vehicles.
Moreover, the company seeks to disrupt the pre-owned vehicle supply chain by providing dealers with virtual inventory and other tech tools, along with a 24/7 distribution platform.
By focusing on the total experience and not just on the vehicles as objects to buy and sell, RumbleOn has earned its place as a go-to resource for dealers and buyers alike. The data bears this out, as RumbleOn jumped from $38,642,000 in revenue during 2020’s first nine months to $121,307,000 during the equivalent period of 2021.
A Growth Story in Motion
Whether it’s in powersports or e-commerce or elsewhere, today’s businesses must continue to expand their operations in order to stay competitive.
Fortunately, it appears that RumbleOn is successfully applying this principle. For instance, the company has agreed to acquire Freedom Powersports, “including the business and powersports dealerships operated at 13 locations in Texas, Georgia and Alabama.”
With the Freedom Powersports acquisition, RumbleOn’s national presence will expand to over 55 locations. We can reasonably expect this transaction to close in early 2022.
Turning our attention to the Sunshine State now, RumbleOn recently disclosed that the company has finalized its acquisition of a Jacksonville, Fla.-based powersports retail location. This new retail location, according to RumbleOn, has a history of steady revenue growth and consistent profitability. RumbleOn Chief Executive Officer Marshall Chesrown emphasized the big-picture implications of this recent Florida-focused purchase:
“Identifying and acquiring retail locations such as Beach Boulevard of Jacksonville is a key component of our growth strategy and this is just one indication of what’s ahead.”
The Bottom Line on RMBL Stock
It’s ironic that RMBL stock, which represents an exciting powersports and e-commerce business, has been so technically uneventful lately.
Just because the stock hasn’t gone anywhere recently, however, doesn’t mean that a breakout isn’t imminent. It should only be a matter of time before RumbleOn’s growth is reflected in the share price.
In the meantime, feel free to hop on and take a ride as RumbleOn is a small company that has big ambitions as an omni-channel powersports platform.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
