Popular contrarian outlet Rumble (NASDAQ:RUM) — which specializes in providing a video platform and cloud services — is seeing its market value skyrocket on Tuesday. This lift follows a substantial boost for RUM stock on Monday. Undergirding the recent burst of bullishness are two news items, in particular the debut of a live-streaming product. Further, RUM stock is gaining credibility as Rumble seeks to build its niche following.
Earlier this morning, management announced the launch of Rumble Studio, billed as an all-in-one tool for creators. Primarily, the benefit here centers on the simplification of the live-streaming experience, allowing users to “easily stream video to multiple platforms, invite guests, and engage with their audience.” Creators will also be able to access video enhancement tools and integration across the Rumble ecosystem.
Notably, Rumble Studio features intuitive integration functionalities with Locals (which Rumble bought out in 2021), Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) YouTube, Amazon’s (NASDAQ:AMZN) Twitch, X (formerly known as Twitter) and Meta Platforms‘ (NASDAQ:META) Facebook.
Rumble Chairman and CEO Chris Pavlovski emphasized the disruptive potential of Rumble Studio:
“Imagine a world with live advertiser bidding, where creators fully endorse and tell their audiences to buy your product, all automated and in real-time. That’s what Rumble Studio will do.”
Pavlovski has good reason to be excited about the launch and RUM stock. Yesterday, RUM’s market value also jumped after the company inked a partnership with digital media firm Barstool Sports. Under the deal, Rumble users will be able to access all Barstool content on the platform.
RUM Stock Rises on the Potential of a Contrarian Audience
Another catalyst supporting the rise in RUM stock recently centers on ideological contrarianism. Rumble makes no bones about what it stands for. Per its official description, the company is “creating the rails and independent infrastructure designed to be immune to cancel culture.”
Of course, “cancel culture” has become a hot-button topic over the past few years. Unsurprisingly, opinions about the term have created a clear dichotomy. As the Pew Research Center points out, many Americans see cancel culture as accountability while others see it as a source of censorship and punishment.
Still, it’s undeniable that conservative consumers carry significant weight. For example, beyond conservative media outlet Fox News under the Fox (NASDAQ:FOX) umbrella, right-leaning viewers also watch alternative media outlets like Newsmax and OAN News. Therefore, a surprisingly large total addressable market supports the case for RUM stock.
Interestingly, research published by the American Marketing Association also shows that conservatives and liberals feel differently about the products they purchase. Specifically, conservatives apparently report more satisfaction with their purchases than liberals.
More research on the topic needs to be done. However, by promoting engaging functionalities such as its live-streaming experience, Rumble could potentially build on a viable audience.
Why It Matters
At the moment, only one analyst covers RUM stock on TipRanks. Rumble has a “buy” rating from D.A. Davidson but no price target.
On the date of publication, Josh Enomoto 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.
