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We recently published an article titled Market Slump Drags Down Share Prices of These 15 Companies. In this article, we are going to take a look at where Rumble Inc. (NASDAQ:RUM) stands against the other stocks.
Wall Street’s main indices ended this week’s trading on a bloodbath following an overall market selloff as investors shifted their capital into assets offering higher returns.
This article will delve into the factors behind the downturn and explore why each company was particularly affected.
To come up with Friday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
A large flat-screen TV streaming video from a video hosting platform.
Rumble Inc. (NASDAQ:RUM)
Rumble Inc., a video sharing platform and cloud services company, saw its share prices tumble by 6.39 percent on Friday to finish at $15.23 apiece as investors took profits following a 28.31-percent increase in its valuation on Thursday.
Year-to-date, the company's stock price rose almost fourfold from the $4.34 closing on January 2.
Last week, the company announced that it entered into a definitive agreement for a strategic investment of $775 million from Tether, the largest company in the digital assets industry and the most widely used dollar stablecoin globally with more than 350 million users. Over the last few years, Tether has become one of the most recognized symbols of financial inclusion.
According to Rumble (RUM), a total of $250 million of the proceeds will be used to support growth initiatives and the remaining proceeds to fund a self-tender offer for up to 70 million Class A common shares.
Overall RUM ranks 9th on our list of the stocks that were recently dragged down by market slump. While we acknowledge the potential of RUM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than RUM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.