r/investing
$RUM 22% short float should soon be on everyone watchlist moving into cloud with 22K+ Nvidia GPUs almost same as $NBIS that’s over $200
Bullish on $RUM due to 22% short float, massive GPU acquisition, and projected $1B revenue from Northern Data deal implying undervaluation.
- High short interest of 22% creates potential for a significant short squeeze.
- Acquisition of Northern Data adds 9 data centers and projects $800-880M in new revenue.
- Current $3B market cap appears undervalued relative to the projected ~$1B total revenue.
- Revenue projections rely heavily on successful integration of the Northern Data acquisition.
- Comparison to $NBIS valuation may be flawed due to differences in business models and profitability.
- Historical volatility and execution risk in pivoting to AI infrastructure are not fully accounted for.
Per conference call yesterday (on official guidance), newly acquired 9 DATA CENTERS of Northern Data will bring in $800-$880 million in revenue and Rumble (standalone) will double revenue to $200-210 million. I have never seen a company trade at $3 billion market cap with nearly $1 billion in revenue. This is an easy 4-5x for me.
It has Trump stink all over it
Also huge debt
I haven’t seen any Trump relation to Rumble yet. Can you advise where you saw that? And I’m seeing $1.58m debt per yahoo finance. How much is the debt??
What? Rumble hosts truth social
Probably a good sign
Hmm Together AI has 50 employees. That doesn't sound like a major AI player.
I have never heard of rumble but they are a social media streaming services platform - that's a pretty bad sign if its a social platform a large number of people haven't heard of.
I look at businesses that acquire datacenters as an asset like real estate - They are property that if gone unrented are simply a cost. If they don't intend to use them directly, then its a cost until they have renters. To say data centers would bring in... From what? Did they name sources on the call?
Fidelity shows a 0 P/E so either they are not profitable or they have spent so much in investment they aren't making money. Not something I would particularly want to invest in. There are a dozen companies right now doing the same thing in the AI space trying to buy up datacenter infrastructure and become part of the cloud. These are not experts in the space.
Overall doesn't seem promising to me personally.
RUM
2025 revenues : $100,622,320
You’re off by 10x on that revenue. Does that mean you expect .3 or .4 return instead of 3x and 4x? Where did you find one billion revenue?
I made some good money shorting this a few years ago when it was obvious they were failing.
Thanks for reminding me that I can do it again.
I think they are moving into AI cloud just added over 22K Nvidia GPUs and 6 data centers..
Here's the thing.
Cloud computing can either be an industry that requires large scale, a good amount of negotiating power both with suppliers and customers, and hiring a lot of very smart people...
Or it can be an industry anybody can get into with a few hundred million dollars worth of lines of credit.
The former means it's going to be a high margin business with high barriers of entry.
The latter means that this will just be a commodity business in which case they will have huge CAPEX costs and low margins.
The major cloud providers are here to stay, and Coreweave and Nebuis' path to profitability is well, nebulous, but I seriously doubt that "YouTube for rejects" is going to be able to find a niche any more than that shoe company can.
They just landed a $270m deal with together AI is a big step!