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We recently published a list of 10 Tech, Energy Stocks Are Wednesday’s Worst Performers. In this article, we are going to take a look at where Rumble Inc. (NASDAQ:RUM) stands against other tech, energy stocks are Wednesday's worst performers.
Ten technology and energy companies suffered a bloodbath on Wednesday, primarily due to profit-taking following the previous day’s gains and bearish comments surrounding the progress of quantum computing development.
In this article, we will look at the performance of some of the worst-performing companies and explore the factors behind their decline.
We considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume to come up with Wednesday’s top losers.
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Rumble Inc. (NASDAQ:RUM)
Rumble Inc. (NASDAQ:RUM) saw its shares decline by 12.27 percent on Wednesday—a second consecutive day—to finish at $11.65 each as investors resorted to profit-taking over the lack of catalysts to spark buying appetite.
Since the start of the year, the company’s current valuation already marked a 10.66-percent drop, indicating investor caution.
Analysts, however, signaled earlier prospects for Rumble (RUM) to remain strong after the company clinched a strategic investment worth $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 Inc. (NASDAQ: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 6th on our list of tech, energy stocks are Wednesday's worst performers. 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 time frame. 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.