Rumble Inc. (NASDAQ:RUM) shares were trading down on Thursday. The company announced the initial results of its exchange offer for Northern Data AG.
• Rumble stock is showing weakness. Why are RUM shares declining?
The stock’s decline came during a mixed market backdrop, with major indices such as the Dow Jones gained 0.62% and the S&P 500 was up 0.42%.
Rumble Exchange Offer Update For Northern Data Shares
Rumble reported that 5,708,665 shares were tendered during the initial acceptance period of its exchange offer. It brought the total shares secured to approximately 81.3% of Northern Data’s outstanding shares.
The exchange offer allows Northern Data shareholders to receive 2.0281 shares of Rumble for each Northern Data share, with the closing expected in mid-June 2026.
The exchange offer gives Northern Data shareholders the opportunity to directly own shares in Rumble and participate in the combined company's strategy to build a leading independent platform spanning AI computing, cloud infrastructure and digital video.
The merged entity aims to create a vertically integrated AI and cloud ecosystem with the scale, technology capabilities and financial strength to compete on a global level.
Northern Data's management board and supervisory board unanimously recommended that shareholders approve the offer.
RUM Technical Outlook: Momentum and Key Support Levels
Over the past 12 months, Rumble’s stock declined by 25.22%. Currently, the stock is trading at $8.13, which is 7.4% above its 20-day simple moving average (SMA) of $7.21 and 29.1% above its 50-day SMA of $6. The moving average convergence divergence (MACD) was above its signal line, indicating that downside pressure is easing, suggesting a potential for improving momentum.
- Key Resistance: $8 — Nearby level where rebounds can stall.
- Key Support: $6.50 — Nearby level where buyers previously stepped in.
RUM Earnings Preview: Next Report Date and Analyst Estimates
Investors are looking ahead to the next earnings report on Aug. 10.
- EPS Estimate: Loss of 10 cents (Up from loss of 12 cents year-over-year)
- Revenue Estimate: $116.58 million (Up from $25.08 million YoY)
How Rumble Ranks On Momentum Versus The Market
Below is the Benzinga Edge scorecard for Rumble, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Strong (Score: 73.44) — Stock is outperforming the broader market.
The Verdict: Rumble’s Benzinga Edge signal revealed a strong momentum profile, indicating that the stock is currently outperforming the broader market. This suggested positive investor sentiment and potential for continued growth as the company navigates its strategic initiatives.
RUM Price Action: Rumble shares were down 2.52% at $8.12 at the time of publication on Thursday, according to Benzinga Pro.
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