Yahoo Finance Analysts Expect Breakeven For Rumble Inc. (NASDAQ:RUM) Before Long
We feel now is a pretty good time to analyse Rumble Inc.'s (NASDAQ:RUM) business as it appears the company may be on the cusp of a considerable accomplishment. Rumble Inc. operates video sharing platforms. The US$2.7b market-cap company posted a loss in its most recent financial year of US$13m and a latest trailing-twelve-month loss of US$21m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Rumble's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for Rumble
According to the 2 industry analysts covering Rumble, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$4.9m in 2024. The company is therefore projected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 64%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Rumble's growth isn’t the focus of this broad overview, but, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that Rumble has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
This article is not intended to be a comprehensive analysis on Rumble, so if you are interested in understanding the company at a deeper level, take a look at Rumble's company page on Simply Wall St. We've also put together a list of essential factors you should further examine:
Valuation: What is Rumble worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Rumble is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Rumble’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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