Before the upcoming merger with CF Acquisition Corp VI CFVIone analyst calls Rumble’s offer of “neutrality-as-a-service.”
The Rumble Analyst: DA Davidson analyst Tom Forte has started coverage of Rumble with a buy rating and a price target of $15.
Related link: Neutral video platform Rumble goes public via SPAC: What investors should know and their connection to Donald Trump
The Rumble Takeaways: Rumble provides a platform for users to share videos through a free service. Unlike other social media platforms that have banned users, Rumble focuses on being neutral and focusing on free speech.
“Rumble differs from social networking platforms like Twitter and YouTube in its commitment to operate with consistent and creator-friendly standards of conduct and content restrictions to build trust within its creator community,” Forte said of the comparisons Twitter Inc TWTR and alphabet inc WELL Google-own YouTube.
The analyst predicts that Rumble could grow its revenue at a compound annual rate of 119.1% from 2021 to 2024.
“We believe that social, mobile OTT and the collaboration with Amazon are most important for the company.”
Forte sees a large audience on Rumble that could continue to monetize. The company may continue to add additional content creators as well.
“Rumble’s differentiated strategy could result in a larger than expected number of content creators joining its platform, which could have a positive impact on engagement and monetization.”
International expansion is also key to Forte’s thesis on the stock, with Rumble working to expand into new territories like Australia, Canada, France, Italy, and the United Kingdom.
User-generated content for Rumble could make the company stronger than online competitors like newspapers, which have to pay for content, the analyst said.
“User-generated content is free.”
Forte sees the need for neutrality in the social media arena, with Rumble standing out.
“Rumble aims to…
