Rumble has announced the acquisition of a new customer for its cloud infrastructure business. Shares of Rumble (RUM), known as a right-wing competitor to YouTube, experienced an increase today following the announcement of this addition to its fledgling cloud business. The development suggests potential for generating a significant revenue stream to complement Rumble’s video-sharing platform. Consequently, the stock saw a 9% rise in its closing value.
Rumble has revealed that the online retailer Sticker Mule, specializing in custom merchandise, is now a client of Rumble Cloud. Sticker Mule will be transferring its artificial intelligence processing tasks to the Rumble Cloud, utilizing Rumble’s available Nvidia H100 inventory for these operations. Having been a consistent advertiser on Rumble, Sticker Mule’s transition to utilizing Rumble Cloud seems a strategic move. Given that Rumble Cloud, which became publicly accessible this March, is relatively new, the acquisition of every new customer indicates increasing traction. Rumble Cloud faces competition from established cloud infrastructure providers like Amazon and Microsoft, but it leverages its advocacy for a free and open internet as a potential advantage.
Sticker Mule’s CEO, Anthony Constantino, commented on this decision, stating that the shift is a natural fit due to the alignment of customer expression in merchandise design and Rumble’s dedication to free speech.
Looking ahead, Rumble’s trajectory appears to be influenced by the election, given its conservative platform’s popularity among Trump supporters. A potential Trump victory might lead to increased business and attention. The company has also reported progress in expanding its cloud business in its latest earnings report, which could become a valuable source of profits, considering the success of major cloud infrastructure firms. Rumble remains relatively small, with $22.5 million in revenue during its most recent quarter, with the cloud business contributing to only a small portion of that. Investors should monitor the upcoming election and further developments in the cloud sector, as these factors are likely to impact the stock’s performance in the coming weeks.
