What Happened?
Shares of video sharing platform Rumble (NASDAQGM:RUM) jumped 5.2% in the afternoon session after President Donald Trump softened his tone on China.
U.S. stocks recovered some of the losses from the previous trading session after the president stated on social media that things "will all be fine" and told people not to "worry about China."
This shift in tone came just days after he threatened much higher tariffs, which had caused the market to fall sharply. The reassuring comments helped ease investor concerns about a trade dispute, leading to a widespread rebound across major U.S. indexes, including the S&P 500, the Dow Jones Industrial Average, and the Nasdaq composite.
After the initial pop the shares cooled down to $7.82, up 5% from previous close.
Is now the time to buy Rumble? Access our full analysis report here.
What Is The Market Telling Us
Rumble’s shares are extremely volatile and have had 54 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 3.8% on the news that worries over worsening trade relations with China were triggered by critical comments from President Donald Trump.
Trump targeted China's tightening controls on rare earth metals, which are vital components in many technology products from electric vehicles to defense systems. The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market.
Earlier in the week, China announced new export controls on the critical minerals. Beijing's Commerce Ministry stated that foreign suppliers now need government approval to export products containing certain rare-earth materials. These materials are essential for producing high-tech goods, including computer chips, electric vehicles, and defense technology. Analysts viewed the move as a strategic assertion of China's dominance in the global rare earth supply chain, particularly amid ongoing trade tensions and ahead of an anticipated meeting between the US and Chinese presidents.
Consequently, technology stocks with significant exposure to Chinese supply chains, such as Nvidia and AMD, experienced sharp declines. This downturn was exacerbated by the bearish sentiment surrounding a prolonged U.S. government shutdown, adding to overall market uncertainty.
Rumble is down 36.9% since the beginning of the year, and at $7.82 per share, it is trading 51.9% below its 52-week high of $16.27 from December 2024.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
