Rumble's third-quarter results missed estimates
Rumble Inc (NASDAQ:RUM) stock is surging today, up 13.7% at $6.69 at last glance, after the video platform name announced its acquisition of German AI firm Northern Data for roughly $767 million. The shares are brushing off the company's disappointing third-quarter results in response, with losses of 8 cents per share on revenue of $24.76 million both missing estimates.
Today's pop has Rumble stock rebounding off last session's almost 12-month lows, though all daily moving averages between the 20- and 320-day trendlines linger above as potential resistance. Since the start of 2025, the equity is down 48.5%.
Options bulls are chiming in in response, with 7,033 calls exchanged so far -- 5 times the call volume typically seen at this point -- in comparison to just 835 puts. The weekly 11/14 7-strike call is the most popular, with new positions opening there.
Some of today's price action could be attributed to short covering, as 17.8% of the stock's available float is sold short. It would take shorts over six days to cover, at RUM's average pace of trading. It's also worth noting that the stock's 14-day Relative Strength Index (RSI) of 20 sits in "oversold" territory, which often precedes a short-term bounce.