Ziff Davis (ZD) Q3 Earnings Align with Expectations
Earnings Performance: Ziff Davis reported quarterly earnings of $1.76 per share, matching expectations, and showing an increase from $1.64 per share a year ago, while revenues of $363.71 million fell short of estimates by 1.58%.
Stock Outlook: The company's stock has underperformed, losing about 38.6% this year compared to the S&P 500's 15.6% gain, with a current Zacks Rank of #3 (Hold) indicating expected performance in line with the market.
Future Earnings Estimates: Current consensus estimates for the upcoming quarter are $2.75 EPS on $431.46 million in revenues, with the fiscal year estimate at $6.88 EPS on $1.48 billion in revenues, suggesting potential for growth.
Industry Context: Ziff Davis operates in the Internet - Software industry, which ranks in the top 35% of Zacks industries, indicating a favorable environment that could influence stock performance positively.
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- App Launch: Rumble Inc. announced that its short video platform Rumble Shorts has been approved by Google Play, allowing Android users to download or update the Rumble app to experience short-form content, which is expected to enhance user engagement and platform appeal.
- Web Debut: Last week, Rumble launched Rumble Shorts on its website, marking a strategic move into the short video space aimed at attracting more users and competing effectively against rivals.
- Apple App Store Plans: The company plans to submit Rumble Shorts for approval to the Apple App Store next week, and if successful, this will further expand its user base and enhance brand influence, particularly among iOS users.
- Positive User Feedback: Rumble CEO Chris Pavlovski noted that the feedback since the unveiling of Rumble Shorts has been overwhelmingly positive, indicating a strong demand for short-form content in mobile apps, aligning with the company's mission to protect a free internet.
- Tether Stake Increase: Tether Global Investments Fund and its subsidiary purchased 777,012 Class A shares of Rumble at an average price of $5.43 over three sessions, indicating strong confidence in the company's outlook, which may attract more investor interest.
- Positive Market Reaction: This acquisition allows Tether to indirectly hold over 105.2 million shares of Rumble, making them significant shareholders, and the market generally views this as a strong endorsement of Rumble's future, potentially driving the stock price higher.
- Technical Indicator Analysis: Despite a 49.06% decline in the past 12 months, Rumble shares are currently priced at $6.31, trading 4.1% above the 20-day simple moving average, indicating short-term rebound potential, although long-term trends remain weak.
- Mixed Market Sentiment: With an RSI of 45.66 indicating neutral territory and a MACD below its signal line suggesting bearish pressure, market sentiment appears mixed, with short-term resistance at $6.50 and ongoing challenges ahead.

- Market Entry Strategy: Polygon Labs announced the acquisition of crypto payment company Coinme and infrastructure provider Sequence for $250 million, aiming to enter the rapidly growing stablecoin payments market, thereby enhancing its competitiveness in digital payments.
- Stablecoin Market Outlook: As stablecoins gain widespread acceptance, Polygon founder Sandeep Nailwal stated the goal is to make Polygon the largest avenue for stablecoin money movement globally, reflecting confidence in the shift in future payment methods.
- Industry Dynamics: Since December 2025, six stablecoin projects have launched globally, indicating a sustained demand for stablecoins, particularly in payment applications, which further drives Polygon's acquisition decision.
- Regulatory Environment Changes: Increased regulatory clarity in the U.S. and Europe is expected to boost stablecoin adoption, positioning Polygon favorably in this transition to meet merchants' needs for higher liquidity and compliance.

- Wallet Launch: Rumble, in collaboration with Tether, has launched the Rumble Wallet, which supports USDT, Tether Gold, and BTC, enabling creators to receive direct crypto tips, thereby enhancing interaction and revenue potential between creators and their audiences.
- Decentralization Benefits: The wallet operates on a non-custodial basis, allowing users to maintain control over their assets, which eliminates the need for intermediaries, accelerates payment processes, and reduces transaction costs, thus enhancing user experience.
- Technological Innovation: Built on the Tether Wallet Development Kit (WDK), Rumble Wallet marks the first real-world deployment of this toolkit, signifying further advancement in decentralized finance technology and enhancing Rumble's competitive edge in the market.
- Payment Integration: MoonPay will power the crypto on- and off-ramps for Rumble Wallet, allowing users to seamlessly transition between crypto and traditional payment methods, further promoting the adoption and use of crypto payments.
- Merger Progress: Rumble Inc. has confidentially submitted a draft registration statement to the SEC regarding its merger with Northern Data AG, marking a significant step in the transaction process and expected to accelerate Rumble's international expansion.
- Cloud Business Expansion: The merger will enable Rumble to acquire one of the largest GPU estates in Europe along with a data center business, significantly enhancing its cloud computing capabilities and driving revenue growth.
- Transaction Conditions: Rumble plans to submit a voluntary public exchange offer to Northern Data shareholders once the registration statement is effective, with the acceptance period and closing expected to occur in the second quarter of 2026.
- Strategic Implications: This merger will not only accelerate Rumble's creator, video, and advertising AI roadmap but also provide significant revenue growth opportunities, further solidifying its market position.
- Options Contract Appeal: The current bid for the $7.00 strike put option is 5 cents, and if an investor sells-to-open this contract, they commit to purchasing the stock at $7.00 while collecting the premium, effectively lowering their cost basis to $6.95, which presents an attractive alternative compared to the current share price of $7.14.
- Potential Return Analysis: The strike price represents an approximate 2% discount to the current trading price, with a 99% chance of the contract expiring worthless, which would yield a 0.71% return on cash commitment, equating to an annualized return of 86.90%, highlighting potential profit opportunities for investors.
- Volatility Assessment: The actual trailing twelve-month volatility for Rumble Inc., considering the last 249 trading days and today's price of $7.14, is calculated at 75%, indicating a high expectation of price fluctuations in the market that could influence investor decisions.
- Market Tracking Tools: Stock Options Channel will track the changing odds of this contract expiring worthless over time and publish related data charts on their website, aiding investors in understanding market dynamics and the potential value of options contracts.





