We recently published an article titled Why These 10 Small-Cap Stocks Are Skyrocketing. In this article, we are going to take a look at where Rumble Inc. (NASDAQ:RUM) stands against the other small-cap stocks.
Wall Street is increasing its bet on small-cap stocks, suggesting that the sector will potentially outperform in 2025. The reasons behind this are simple. While stable rates will be one of the biggest tailwinds for small-cap names, analysts also expect stronger valuations and solid earnings growth from the sector in the year ahead. Most importantly, with expectations tied to the market broadening, investors and analysts are excited to see how the market conditions pan out for small caps.
Ten companies in diverse sectors such as the financials, healthcare, technology, and energy industries, locked in overall positive market gains due to supportive market conditions, macroeconomic environment, and growth potential. That said, let’s take a look at the 10 small-cap stocks that happen to be skyrocketing.
To come up with the 10 names, we only considered stocks with a market capitalization between $1 billion and $10 billion. We then shortlisted the stocks based on their performance in the past quarter and picked the top 10 with the highest 30-day return from December 16, 2024, to January 16, 2025.
A large flat-screen TV streaming video from a video hosting platform.
Rumble Inc. (NASDAQ:RUM)
30-day Return as of January 16, 2024: 26%
On January 16, RUM registered a 26% increase in its share price, reaching $10.88 apiece, up from $8.64 on December 16, 2024.
Rumble Inc. (NASDAQ:RUM) is a video-sharing and cloud services provider that recently received a $775 million investment from Tether, one of the largest companies in the digital assets industry. The immediate $250 million in cash will help fuel RUM’s growth initiatives, improving the company’s liquidity situation immensely.
On January 15, analyst firm Maxim initiated a buy rating on the stock with a price target of $20. The company’s stock price primarily jumped after it received an investment from Tether. However, that’s not all, RUM’s strategic partnerships followed by a ban on TikTok in the United States, may also fuel demand for the video-sharing platform.
Overall RUM ranks 7th on our list of the small-cap stocks that are skyrocketing right now. While we acknowledge the potential of RUM as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RUM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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