Rumble Inc. (RUM) stock plunged 5.45% in pre-market trading on Tuesday, following a sharp 81% surge in the previous session on Monday. The pre-market plunge comes as investors take some profits after Rumble's rally on news of a $775 million investment from cryptocurrency company Tether.
On Monday, Rumble shares soared after the video platform entered an agreement for a $775 million investment from Tether. Tether agreed to purchase around 103.3 million Rumble shares at $7.50 per share. Rumble stated that it anticipates using $250 million to support growth initiatives, with the remaining proceeds to fund a self-tender offer for up to 70 million class A common shares.
The investment from Tether, which owns the namesake stablecoin, provided a significant boost to Rumble, a conservative video content platform that went public in 2022 after merging with a special purpose acquisition company. However, profit-taking appears to be driving the pre-market decline on Tuesday as investors lock in gains from the stock's recent surge.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.