We recently compiled a list of the 10 Firms Mirror Broader Market Downturn Ahead of 2025. In this article, we are going to take a look at where Rumble Inc. (NASDAQ:RUM) stands against the other firms that mirror broader market downturn ahead of 2025.
Ten companies mirrored a wider market downturn on Monday, as investors repositioned their portfolios in preparation for 2025.
On Monday, the Dow shed 0.97 percent or 418 points, while the S&P’s broader index decreased 0.95 percent or 56.48 points. The tech heavy Nasdaq registered the biggest decline, down 1.19 percent or 235.24 points.
In this article, let’s look at why some of the relatively larger-cap companies declined and what dragged down the performance of their shares.
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Rumble Inc. (NASDAQ:RUM)
Shares of Rumble Inc. (NASDAQ:RUM) saw a 9.13-percent decline on Monday, ending the day at $13.84 each as traders resorted to profit-taking following higher prices the day prior.
Despite the decline, Rumble’s five-day and 30-day trading shows continuous investor confidence, having booked an impressive growth of 38 percent and 101 percent, respectively.
Last week, the company announced that it entered into a definitive agreement for a strategic investment of $775 million from Tether, the largest company in the digital assets industry and the most widely used dollar stablecoin globally with more than 350 million users. Over the last few years, Tether has become one of the most recognized symbols of financial inclusion.
According to Rumble (RUM), a total of $250 million of the proceeds will be used to support growth initiatives, and the remaining proceeds to fund a self-tender offer for up to 70 million Class A common shares.
Overall, RUM ranks 2nd on our list of firms that mirror broader market downturn ahead of 2025. While we acknowledge the potential of RUM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RUM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.