Why Rumble Inc. (RUM) Skyrocketed Yesterday

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We recently compiled a list of the 10 Hottest Stocks: What's Fueling Their Rise. In this article, we are going to take a look at where Rumble Inc. (NASDAQ:RUM) stands against the other stocks that skyrocketed yesterday.

Ten companies—predominantly involved in the quantum computing sector—have taken the spotlight on Thursday, booking significant gains despite a lackluster performance from Wall Street’s main indices.

To come up with Thursday’s top gainers, we considered only the stocks that have at least $2 billion in market capitalization and $5 million in daily trading volume.

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Rumble Inc. (NASDAQ:RUM)

Shares of Rumble rallied anew on Thursday, registering a 28.31-percent increase to close at $16.27. Year-to-date, the company saw its share prices rose by almost four folds 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 across the world 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 2nd on our list of the stocks that skyrocketed yesterday. 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.

 

Disclosure: None. This article is originally published at Insider Monkey.