Short interest in conservative media stock Rumble (RUM) is rising. As the 2024 presidential election approaches, short sellers have been closing in on Trump Media & Technology Group (DJT), according to data from Fintel. But now they are also raising their bets against fellow Trump trade Rumble. The conservative video-sharing platform has been rising on election-driven momentum lately but it seems that short sellers may be hedging their bets on Trump’s chances of victory.
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What’s Happening with RUM Stock Today?
Both Rumble and DJT are rising steadily today as enthusiasm mounts for a potential Trump victory. As of this writing, RUM stock is up 13% for the day and looks primed to continue trending upward. Despite its recent progress, though, Rumble is still down 6% for the past six months and doesn’t seem to be able to get close to the $10 mark.
Now, Fintel’s data shows that short interest in Rumble stock is also rising. It currently accounts for more than 17% of the stock’s float, which puts it just under that of DJT. Short sellers require five days to cover their positions but it should be noted that there are currently only 700 shares available to short. That shows an active interest from short sellers.
With election polls consistently showing an extremely narrow race between Donald Trump and Vice President Kamala Harris, it makes sense that investors would be hedging their bets on stocks that are closely tied to Trump. Predictive markets still favor his victory odds, but it is clear that short sellers do not.
The Bears are Closing In on Rumble Stock
Like the short sellers, Wall Street isn’t optimistic about Rumble stock, even as shares continue rising. Analysts have a Hold consensus rating on RUM stock based on two Holds assigned in the past three months, as indicated by the graphic below. After a 34% rally over the past year, the average RUM price target of $8 per share implies 23.65% upside potential.
The lack of analyst takes suggests that, like DJT, RUM stock isn’t taken seriously by most of Wall Street. It currently boasts two more ratings than the fellow Trump trade, but even so, it is clear that analysts don’t have much faith in either company. This is likely factoring into the decision of short sellers to bet against Rumble.
