Why Rumble Stock Is Falling Today

Source The Motley Fool

Rumble (NASDAQ: RUM) stock is slumping in Wednesday's trading. The company's share price was down 3.9% as of 3 p.m. ET and had been down as much as 5.8% earlier in the day.

Rumble's valuation is moving lower in conjunction with insider selling disclosures submitted to the Securities and Exchange Commission (SEC) yesterday. The stock is also seeing pressures related to the higher-than-anticipated inflation in the latest Consumer Price Index (CPI) report from the Bureau of Labor Statistics.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Rumble stock slips on insider selling

Rumble submitted a series of filings to the SEC disclosing recent stock sales from company managers and members of its board of directors. On Feb. 7, CEO Christopher Pavlovski sold 354,849 shares of Rumble Class A common stock at a price of $7.50 per share. Following the sale, Pavlovski owned 522,927 shares of the company's class A common stock and also held much larger positions in other share classes.

Chief Financial Officer Brandon Alexandroff also sold more than 8.8 million shares of class A common stock at a price of $7.50 per share on Feb. 7. Meanwhile, Chief Content Officer Ramolo Claudio sold more than 6.2 million shares of class A common stock at $7.50 per share, and Chief Operating Officer Tyler Hughes sold more than 312,000 shares at the same price. Five other company officials and board members also sold stock on Feb. 7.

Inflation data is also pressuring Rumble today

In addition to the insider selling news, Rumble stock is also seeing pressures connected to inflation news today. The latest core CPI data showed that inflation came in at 3.3% in January, which topped the average estimate for inflation of 3.2% in the month. Meanwhile, the core CPI increased at a sequential monthly rate of 0.4% -- ahead of the average economist forecast for an increase of 0.3%.

With the latest inflation data, investors are starting to think that it's more likely that the Federal Reserve will hold off on any additional interest rate cuts this year. For Rumble and other growth-dependent companies operating at losses, that could mean a more challenging valuation backdrop.

Should you invest $1,000 in Rumble right now?

Before you buy stock in Rumble, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rumble wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $813,868!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

Learn more »

*Stock Advisor returns as of February 7, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
AUD/USD: Current price action is likely the early stages of a recovery – UOB GroupAustralian Dollar (AUD) is likely to trade in a sideways range between 0.6220 and 0.6290. In the longer run, current price action is likely the early stages of a recovery phase that could potentially reach 0.6350, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
Author  FXStreet
Jan 22, Wed
Australian Dollar (AUD) is likely to trade in a sideways range between 0.6220 and 0.6290. In the longer run, current price action is likely the early stages of a recovery phase that could potentially reach 0.6350, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
placeholder
Five bullish Shiba Inu (SHIB) Price Predictions for April 2025SHIB price targets diverge as investors weigh Shibarium L3 upgrades, burn-rate surges, and altcoin market sentiment. Forecasts range from a conservative $0.000012 to a parabolic $0.00030.
Author  FXStreet
Apr 16, Wed
SHIB price targets diverge as investors weigh Shibarium L3 upgrades, burn-rate surges, and altcoin market sentiment. Forecasts range from a conservative $0.000012 to a parabolic $0.00030.
placeholder
Ethereum Price Stays Resilient — Upside Break May Be AheadEthereum price started a downside correction below the $1,780 level. ETH is now consolidating near the $1,800 zone and might aim for a move above $1,820.
Author  NewsBTC
Yesterday 03: 52
Ethereum price started a downside correction below the $1,780 level. ETH is now consolidating near the $1,800 zone and might aim for a move above $1,820.
placeholder
Gold price slides back closer to $3,300 amid tariff deals optimismGold price (XAU/USD) struggles to capitalize on the previous day's bounce from the vicinity of the $3,265-3,260 pivotal support and attracts fresh sellers during the Asian session on Tuesday.
Author  FXStreet
21 hours ago
Gold price (XAU/USD) struggles to capitalize on the previous day's bounce from the vicinity of the $3,265-3,260 pivotal support and attracts fresh sellers during the Asian session on Tuesday.
placeholder
EUR/USD ticks lower despite uncertainty over US-China tradeEUR/USD edges lower to near 1.1400 during European trading hours on Tuesday. The major currency pair ticks lower as the US Dollar (USD) steadies, but remains broadly on edge amid escalating uncertainty about the trade outlook between the United States (US) and China.
Author  FXStreet
18 hours ago
EUR/USD edges lower to near 1.1400 during European trading hours on Tuesday. The major currency pair ticks lower as the US Dollar (USD) steadies, but remains broadly on edge amid escalating uncertainty about the trade outlook between the United States (US) and China.
goTop
quote