By Sam Boughedda
A DA Davidson analyst reiterated a Buy rating and $15 price target on Rumble (RUM) in a note to clients Wednesday.
The analyst said the company is "ready to Rumble," highlighting the "impressive backgrounds of senior management" and the company's mission to protect a free, open internet.
The note also follows a call with the company's senior management.
On Rumble management's background, the analyst said they "are impressed by not only Mr. Pavlovski's vision for Rumble serving as a neutral social-networking and cloud-computing company but also his background, including building websites in his parents' basement and his firsthand experiences with the founders of YouTube; Mr. Hughes' extensive healthcare and startup experience; and Mr. Alexandroff's time spent in Canada building XM and a competing wireless carrier service to take on the incumbents," declared the analyst.
On its mission, he said his firm believes it could prove to be an effective strategy in 2022, given the different strategies employed by Google's (NASDAQ:GOOGL) YouTube in social networks and Amazon's (NASDAQ:AMZN) AWS in cloud computing, among others, with Rumble's platform said to be growing.
"The company told us that its period of growth began with the conservative world discovering the platform in late 2020. Since then the political left and crypto enthusiasts began to use the platform and now the company is witnessing an influx of GenZ users. As the platform's content filled out, it experienced an increase in engagement as captured by MAUs," the analyst added.