Rumble’s Strategic Pivot: Can AI Infrastructure Overcome Persistent Losses?

Rumble shares are experiencing significant downward pressure, trading dangerously close to their annual low despite the company's ambitious expansion strategy. The stock, which briefly surged 15% to $6.69 following the acquisition of Northern Data, has since retreated to approximately $6.03—representing a nearly 2% decline. This downward movement occurs as the video platform operator continues to report substantial losses despite its billion-dollar bet on artificial intelligence infrastructure.

The company's third-quarter financial results revealed ongoing profitability challenges. Rumble recorded a net loss of $16.26 million, translating to a per-share loss of $0.06. Revenue reached $24.76 million, marking a slight 1.2% decrease compared to the same period last year. These figures demonstrate the company's continued struggle to reach profitability despite various strategic initiatives.

Billion-Dollar AI Bet Through Northern Data Acquisition

Rumble's transformative move comes through its all-share acquisition of German AI infrastructure specialist Northern Data, valued at $767 million. This strategic purchase provides Rumble with approximately 22,000 Nvidia GPUs and access to a global network of data centers. Under the agreement, Northern Data shareholders will receive 2.0281 Rumble shares for each of their shares, ultimately owning about 30.4% of the combined company's expanded capital.

Should investors sell immediately? Or is it worth buying Rumble?

Tether's Substantial Financial Backing

Beyond the acquisition, Rumble has secured additional financial support from Tether. The stablecoin issuer has committed $150 million for GPU services and up to $200 million in cash. Furthermore, beginning in the first quarter of 2026, Tether will provide $100 million in advertising budget over two years specifically targeted at promoting the Rumble Wallet and its integrated cryptocurrency payment capabilities.

Market Response Turns Cautious

The initial market enthusiasm that followed the November 10 Northern Data acquisition announcement has faded. After jumping 13.7% to $6.69, the stock has given back most of those gains, currently trading around $6.03. While institutional investors maintain a 26.15% stake in the company, analyst sentiment appears to be shifting:

• Current trading level: Approximately $6.03
• Daily performance: Down 1.9%
• Prevailing analyst rating: Predominantly "Hold"
• Average price target: $14

As Rumble expands its cloud services through partnerships like the one with the Cleveland Browns, the central question remains whether the company can successfully balance massive AI infrastructure investments against its urgent need to achieve profitability.