Former special purpose acquisition company (SPAC) Rumble (NASDAQ:RUM) has been making headlines after successfully completing its de-SPAC earlier this week. Rumble operates as a conservative media platform that seeks to compete with Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Youtube. One advantage that the platform holds over Youtube is that it pays its creators about 60% of its revenue, while Youtube pays about 20%. Still, Youtube is the leading video-sharing website and thus carries a massive user base that trumps Rumble’s user base by a wide margin. It’s probable that if Rumble grows even further, it will lower its revenue-sharing figure.
As part of the transaction, Rumble will receive about $400 million in gross proceeds. The proceeds will go towards building infrastructure, marketing, attracting new content creators, and other general corporate purposes. Meanwhile, total redemptions were a scant 0.1%, signifying the loyalty of RUM shareholders.
The ticker RUM is an ode to the company’s goals to “protect and promote freedom.” In 1764, the Sugar Act was enacted, which imposed regulations and taxes on a major component of rum, molasses. Rum was an extremely popular drink during the colonial era and was ultimately a catalyst for the American Revolution.
So, who’s betting big on RUM stock?
Five Investors Betting Big on RUM Stock
Tracking institutional ownership is important, as these large investors provide liquidity and price support for stocks. During the second quarter, 86 13F filers reported owning RUM, an increase of two funds from the prior quarter. On top of that, the institutional put/call ratio lies at a low of 0.48, down from 0.81 during the first quarter. This means that institutions own more call options against the company than put margins by a wide margin. In total, institutions own 2.29 million call options against RUM and 1.11 put options.
With that in mind, let’s take a look at the largest shareholders of RUM:
- Beryl Capital Management: 1.79 million shares. Beryl purchased its entire stake during Q2.
- Susquehanna International Group: 588,288 shares. Susquehanna purchased 240,819 shares during Q2.
- Millennium Management: 461,418 shares. Millennium sold 6,781 shares during Q2.
- JAT Capital Management: 340,104 shares. JAT purchased 168,697 shares during Q2.
- Empyrean Capital Partners: 333,594 shares. Empyrean’s position remained unchanged during Q2.
On the date of publication, Eddie Pan did not hold (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.
