Rumble (RUM 0.20%) stock is gaining in Friday's trading. The company's share price was up 5.1% as of 3 p.m. ET despite a 0.4% drop for the S&P 500 index and a 0.7% decline for the Nasdaq Composite index. The stock had been up as much as 9.3% earlier in the session.
NASDAQ: RUM
Key Data Points
Rumble is climbing today after President Donald Trump signed an executive order to explore the creation of a U.S. cryptocurrency reserve program. While Rumble's core business is still its streaming video platform, the company has recently been making a push into the crypto space.
Rumble stock jumps on Trump crypto news
At the White House yesterday, Trump issued an executive order outlining standards and priorities for the U.S. crypto industry. The order includes new protections for cryptocurrency miners and developers and for crypto owners who keep their tokens on personal digital wallets rather than centralized platforms.
In addition to laying out these standards, the executive order also lays the groundwork for the U.S. to look into creating a cryptocurrency reserve and support stablecoins based on the U.S. dollar. Last month, Rumble's stock price surged after it was announced that the company had secured a $775 million investment deal from the Tether stablecoin's parent company. Investors are betting that Rumble could be poised to see continued crypto-related tailwinds and are bidding up its stock today.
What comes next for Rumble stock?
Even though Rumble's core business revolves around video streaming, the narrative surrounding the stock has recently shifted to the company's moves in the crypto space. Earlier this week, Rumble CEO Chris Pavlovski announced that the company had made its first investment in Bitcoin and that additional investments would follow. The company will also be paying creators on its platform in Bitcoin.
While Rumble's push into the crypto space creates avenues for its stock to see valuation gains, there are still some big questions surrounding the strength and viability of its core business. Despite benefiting from tailwinds related to the 2024 election cycle, the company's video streaming platform has been putting up disappointing user engagement and monetization numbers. With a new, heightened focus on crypto while its core business is putting up uninspiring performance, Rumble is a difficult company to value right now.
