Rumble Stock Soars on AI Partnership: What Investors Should Know About the RUM Rally and Its Future

Big price jump after AI deal: Rumble Inc. (NASDAQ: RUM) shares surged roughly 14–18 % in early October 2025 after the company announced a strategic partnership with the AI search start‑up Perplexity. Pre‑market trading pushed the stock to around $8.34 per share, up from the prior close near $7.39 ^[1]. The rally returned RUM to levels not seen since July ^[2].
AI integration aims to improve discoverability: The collaboration will integrate Perplexity’s AI‑powered search tool into Rumble’s video platform, creating a more intuitive search experience and delivering context‑aware content suggestions ^[3] ^[4]. A bundled subscription combining Rumble Premium and Perplexity Pro is planned, and Rumble will promote Perplexity’s new Comet browser ^[5]. Perplexity’s Chief Business Officer Dmitry Shevelenko says the technology “surfaces the most relevant results quickly” to help users discover content ^[6].
Financial fundamentals remain weak: Rumble’s second‑quarter 2025 results show revenue of $25.1 million (up 12 % year over year) but a net loss of $30.2 million ^[7]. Monthly active users fell to 51 million in Q2, though average revenue per user (ARPU) rose 24 % sequentially to $0.42 ^[8]. The company holds around $306 million in liquidity, including cash and Bitcoin ^[9], yet its margins remain deeply negative; WallStreetZen notes that Rumble’s gross margin is –22.5 %, operating margin –291 % and profit margin –289 %, with a price‑to‑sales ratio around 22.46 ^[10].
Options activity and analyst sentiment: On 3 October 2025 investors purchased 12,766 call options, a 72 % increase over the typical volume ^[11], indicating bullish sentiment. Analysts continue to rate the stock a “Moderate Buy,” with an average price target of $14 ^[12]. WallStreetZen lists the stock’s 52‑week range at $5.21–$17.40 and a market cap of $3.7 billion ^[13].
New partnerships broaden the ecosystem: Beyond Perplexity, Rumble formed a multi‑pronged partnership with Cumulus Media in August 2025. Cumulus’s Westwood One will distribute podcasts and premium audio content on Rumble, creating a cross‑platform advertising network. Rumble CEO Chris Pavlovski says the alliance opens new monetization channels and helps advertisers tap into Rumble’s engaged communities ^[14].
Blockchain ambitions: Tether is working with Rumble to launch USAT, a regulated U.S. dollar‑backed stablecoin. The plan includes integrating a crypto wallet into Rumble’s platform, enabling the platform’s 51 million monthly users to adopt stablecoins. Tether CEO Paolo Ardoino hopes to normalise stablecoin use in everyday digital interactions ^[15].
High valuations and risks: Despite the rally, Rumble’s share price still reflects an expensive valuation relative to fundamentals. Seeking Alpha noted earlier that RUM’s price‑to‑sales ratio was around 50 amid the AI hype ^[16]. The company’s user base shrank in a non‑election year, and profits remain elusive ^[17]. Investors should weigh the promise of AI‑driven growth against the risks of high volatility, negative margins and stiff competition from larger platforms.

In‑Depth Report

Rumble’s Journey from Niche Platform to Market Darling

Founded in 2013 by Canadian entrepreneur Chris Pavlovski, Rumble began as a video‑sharing site championing free‑speech creators who felt constrained by mainstream platforms. Over the past few years it has diversified into cloud computing and live streaming while attracting high‑profile content creators. The platform gained attention during the 2024 U.S. elections, drawing conservative audiences and boosting both traffic and revenue. However, after the election cycle, user growth cooled—monthly active users declined from more than 64 million in 2024 to 51 million in Q2 2025, according to the company’s financial report ^[18].

The Perplexity Partnership: AI‑Powered Discovery

The catalyst for the latest rally was Rumble’s announcement on 3 October 2025 that it is partnering with Perplexity, an AI search start‑up. Perplexity’s technology uses large‑language models to understand user intent and deliver context‑aware results. Under the deal, Perplexity’s search engine will be integrated into Rumble’s platform to improve video search and discovery. According to the joint press release, users will gain the ability to “quickly surface the most relevant results” while exploring Rumble’s content ^[19]. The companies also plan to launch a bundled subscription combining Rumble Premium and Perplexity Pro and to promote Perplexity’s Comet browser ^[20]. Comet is described as an AI‑powered browser that provides contextual assistance as users navigate the web, offering a new kind of search and content consumption experience ^[21].

Perplexity Chief Business Officer Dmitry Shevelenko hailed the partnership as a way to help users find relevant content more easily, noting that Perplexity’s AI will “surface the most relevant results quickly” ^[22]. Rumble CEO Chris Pavlovski expressed excitement about bringing AI‑powered search to the platform, saying it will “drive substantial improvements in discoverability” and help content creators connect with their audiences ^[23]. The integration will be rolled out in stages, but the announcement alone sparked a wave of enthusiasm among retail traders and AI enthusiasts.

Market Reaction: A Sharp Rally and Surging Options Activity

Investors responded swiftly to the AI news. On the day of the announcement, RUM shares jumped more than 14 % and reached about $8.34 in pre‑market trading, compared with the previous close of $7.39 ^[24]. The rally continued during regular trading hours, pushing the stock to an intraday high near $8.58 ^[25].

Options traders piled in as well. According to MarketBeat, 12,766 call options were purchased on 3 October 2025—72 % higher than usual volume ^[26]. The surge indicates bullish expectations that the stock will continue to rise. Daily trading volume spiked to 17.7 million shares, far above the three‑month average of 3 million ^[27].

The heavy activity quickly inflated the stock’s valuation. WallStreetZen reports that RUM’s market cap stands around $3.7 billion, with a price‑to‑sales ratio of 22.46, a price‑to‑book ratio of 11.84, and a P/E ratio of –5.94 (reflecting negative earnings) ^[28]. The stock has traded between $5.21 and $17.40 over the past year ^[29].

Financial Picture: Growth, Losses and Liquidity

While AI hype fuels investor enthusiasm, Rumble’s underlying numbers tell a more complex story. In its second‑quarter 2025 earnings report, Rumble announced revenue of $25.1 million, representing 12 % year‑on‑year growth ^[30]. However, the company recorded a net loss of $30.2 million and continued to burn cash. Monthly active users declined to 51 million in the non‑election year, though the average revenue per user (ARPU) increased to $0.42, a 24 % quarter‑over‑quarter gain ^[31]. Rumble ended the quarter with $306.4 million in liquidity, including $283.8 million in cash and 210.82 bitcoin (about $22.6 million at the time), giving the company enough runway to continue investing in growth ^[32].

Nevertheless, profitability remains elusive. Rumble’s gross margin is –22.5 %, and its operating and profit margins are –291 % and –289 %, respectively ^[33]. Negative margins at this scale mean the company spends substantially more to generate revenue than it takes in, raising questions about sustainability. Analysts estimate Rumble will report its next earnings on 17 November 2025 ^[34], and investors will be watching for signs that the Perplexity partnership and other initiatives translate into revenue.

Additional Partnerships: Cumulus Media and Tether’s Stablecoin

The AI partnership is just one piece of Rumble’s expansion strategy. In August 2025, Rumble and Cumulus Media announced a multi‑pronged partnership aimed at merging premium audio content with Rumble’s video platform. Cumulus’s Westwood One will distribute podcasts and audio shows on Rumble, while Rumble will create new multi‑platform advertising packages. Westwood One president Collin Jones said the partnership provides “brand safety and scale,” while Pavlovski touted it as a way to unlock monetization for creators and connect advertisers with Rumble’s audience ^[35]. The deal underscores Rumble’s ambition to become a broader media and advertising platform, not just a video hosting site.

Rumble is also venturing into the crypto world. Tether, the issuer of the world’s largest stablecoin USDT, plans to launch USAT, a regulated U.S. dollar‑backed stablecoin aimed at the U.S. market. Tether will embed a wallet into Rumble’s platform so its 51 million monthly users can transact with USAT. Tether CEO Paolo Ardoino said the partnership is designed to normalise stablecoin use in everyday digital environments and to compete with stablecoins such as USDC and PayPal’s PYUSD ^[36]. The move highlights Rumble’s interest in building financial services around its user base and diversifying revenue streams.

Technical Analysis and Trading Strategies

Technical analysts emphasised that the stock’s short‑term rally does not guarantee continued momentum. The StocksToTrade team noted that the stock opened at $7.31 on the day of the announcement and closed at $8.46, with a high of $8.58. They suggested that a long position above $8.58 could be an attractive trade if the stock breaks through resistance, but recommended setting a stop loss near the $7.31 support level ^[37]. Rumble’s poor fundamentals—negative EBIT margin of –290.7 %, negative gross margin of –53.1 %, and a high price‑to‑sales ratio—mean that the rally is vulnerable to reversals if the AI initiatives fail to deliver tangible results ^[38]. Therefore, traders should be cautious and not chase the stock purely on hype.

Analyst and Expert Commentary

Investors and analysts are divided about Rumble’s long‑term prospects.

The Motley Fool, through articles republished by Mitrade and Nasdaq, argued that the Perplexity partnership is a sensible move that could sharpen Rumble’s competitive edge. The integration will occur in stages and, if successful, may improve search functionality and make the platform more attractive to users ^[39] ^[40].
Investopedia observed that Rumble shares had lost more than 40 % earlier in 2025 but regained mid‑year levels after the Perplexity announcement. The article emphasised that the AI integration differentiates Rumble from larger competitors like YouTube and noted the company’s $30.2 million net loss in Q2 2025 ^[41].
StocksToTrade cautioned that Rumble’s fundamentals remain weak, with deep negative margins and high valuations. The platform’s user base is shrinking and revenue growth is modest. Analysts at the firm urged traders to treat the rally as a “critical positive catalyst” but not a definitive signal of a long‑term turnaround ^[42].
Seeking Alpha commentators have highlighted the broader hype around AI stocks. One article noted that Rumble’s shares were trading near $15 with a price‑to‑sales ratio around 50, cautioning that investors might be overpaying for growth that has yet to materialise ^[43].
MarketBeat reports that Wall Street analysts maintain a “Moderate Buy” rating with an average price target of $14, though the consensus acknowledges the stock’s volatility and lack of profits ^[44].

Risks and Challenges

Rumble’s path forward is rife with challenges:

High valuation and negative margins: At a price‑to‑sales ratio around 22 and heavy losses, investors are pricing in substantial future growth ^[45]. If the AI integration fails to meaningfully boost user engagement or advertising revenue, the stock could quickly retrace.
Competitive environment: Rumble competes against giants like YouTube, Twitch and Spotify for video and audio content. While Perplexity’s AI could enhance differentiation, bigger platforms are also investing heavily in AI. Maintaining user growth and creator loyalty will be critical.
Regulatory and political risk: Rumble’s free‑speech positioning has drawn both support and criticism. Regulatory scrutiny, content moderation challenges and advertising boycotts could affect revenue.
Macro uncertainty: The broader stock market environment remains volatile due to high interest rates and economic uncertainty. As a small-cap, unprofitable tech stock, RUM is particularly sensitive to shifts in risk appetite.

Future Outlook

The Perplexity partnership positions Rumble at the forefront of AI‑powered content discovery. By combining video hosting with a sophisticated search engine and offering a bundled subscription, Rumble hopes to deepen user engagement and open new revenue streams. The company’s cross‑media tie‑ups with Cumulus Media and crypto integration with Tether further broaden its ecosystem and signal ambitions beyond video streaming.

However, the excitement around AI must be balanced against the company’s financial realities. Rumble needs to translate technological partnerships into sustainable revenue growth and eventually positive margins. Without that, the current valuation may be difficult to justify. Long‑term investors should watch key metrics like monthly active users, ARPU and gross margin to evaluate whether the company is delivering on its promises. In the meantime, traders may find opportunities in the stock’s volatility, but they should exercise caution and manage risk carefully.

Conclusion

Rumble’s sudden stock surge reflects both the power of an AI narrative and the volatility of small‑cap tech shares. The strategic partnership with Perplexity offers a compelling vision of AI‑enhanced search and content discovery, while additional deals with Cumulus Media and Tether show management’s ambition to build a broader digital ecosystem. Yet the company remains far from profitability, with negative margins and a shrinking user base. As the AI roll‑out progresses and new features come online, investors will get a clearer picture of whether Rumble can convert hype into sustainable growth.

In summary, the report explains why Rumble Inc.’s stock price jumped 14-18 % after announcing a strategic partnership with AI-search startup Perplexity. The collaboration aims to integrate Perplexity’s AI technology into Rumble’s platform, improving content discovery and bundling subscription services ^[46]. The report notes that this news triggered a surge in call option activity, lifting investor sentiment, yet Rumble’s underlying fundamentals remain weak, with significant losses and negative margins ^[47].

The report then examines the company’s broader strategy, highlighting partnerships with Cumulus Media and Tether, while detailing Rumble’s financial performance and market valuation ^[48]. It assesses analyst and expert opinions, outlines technical trading considerations, and warns of risks from high valuation and competitive pressures ^[49]. Finally, it provides a balanced outlook, stressing that Rumble needs to convert AI-driven excitement into sustainable revenue and profitability for its elevated stock price to be justified.

Rumble, MixRift, Inovo VC and AI innovation