Shares of right-leaning social media platform Rumble (NASDAQ:RUM) have been on a bumpy ride in today’s session. Shares of RUM stock dipped more than 15% today on little negative news.
In fact, one might think that a tweet from Rumble’s CEO highlighting the fact that the information dug up in the so-called “Twitter Files” is only being covered on Rumble may spur investor interest. After all, Elon Musk has decried a lack of mainstream media coverage on specific issues. By uncovering what he views as a coverup of key issues, or at least a degradation of free speech, Rumble’s attention to this matter could provide an edge to this alternative social network.
That said, investors seemingly remain wary of Rumble, given the stance Twitter is now taking. Let’s dive into what may be driving today’s price action with RUM stock.
Why Is RUM Stock Plunging Today?
Elon Musk’s high-profile takeover of Twitter has been cheered on by many users. Those hoping for a reduction of bots, a second chance for banned users and more open and libertarian takes on various issues appear to be cheering the loudest. Accordingly, Elon Musk’s Twitter Files have been controversial, but stimulating, for the platform of late.
That said, it’s clear that Musk is taking a much more right-leaning approach to many divisive issues. By openly stoking many conspiracy theories and grievances, the Twitter Files may be viewed as another example of Musk aiming his platform at users who are more right-of-center, in terms of the political spectrum.
For Twitter alternatives such as Rumble, which has built a business attracting such users, perhaps the investment thesis with this platform isn’t as great as it was before Musk took over. If Twitter becomes a right-leaning platform altogether, Rumble’s unique value proposition could be eroded.
Such may be the theory behind today’s dramatic decline in RUM stock. Of course, time will tell if this selloff is overdone. For now, investors appear to be selling first and asking questions later. Thus, this is a stock that could see significant volatility in the days to come.
On the date of publication, Chris MacDonald 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.