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RumbleON - AI Stock Analysis

Analysis generated November 2, 2024

RumbleON is a publicly traded e-commerce platform based in the United States that facilitates the buying and selling of pre-owned vehicles, specifically motorcycles and other powersports vehicles. The company aims to simplify transactions within this niche market by providing transparent pricing, nationwide shipping, and a straightforward process. Despite its ambitions, RumbleON has experienced both promising growth spurts and notable challenges in recent quarters, necessitating a thorough stock analysis to understand its future potential.

Fundamental Analysis

When examining RumbleON's recent quarterly revenue of $337 million, it's vital to note that this represents a 9.42% increase from the previous quarter, signaling short-term growth. However, year-over-year, this revenue has decreased by 12.00%, raising questions about the company's long-term growth sustainability.

The net income for the last quarter stood at $700,000. This figure marks a significant growth of 93.20% compared to the previous quarter and an outstanding 94.85% increase from the same quarter last year. These increases suggest that the company is becoming more efficient at converting revenue into actual profit, which is a highly positive sign.

However, the EBITDA for the last quarter was reported at $3 million, representing a dramatic 66.67% decrease compared to the previous quarter and a 44.65% decrease from the same quarter last year. This significant decline could be a red flag, indicating that the core operations may be facing profitability issues.

Technical Analysis

RumbleON's stock price currently sits at $5.16, reflecting a 19.72% increase from a month ago. This short-term bullish trend is encouraging. However, when compared to the price a year ago, which has experienced a 20.98% decrease, the long-term outlook becomes more concerning.

The technical indicators further substantiate a short-term positive trend. The current SMA10 is 5.19, which is higher than the previous SMA10 of 5.17, indicating that the stock price is showing a potential upward movement. Additionally, the Relative Strength Index (RSI) stands at 42.1, suggesting a neutral condition without an immediate threat of the stock being overbought or oversold.

Alternative Data Analysis

RumbleON’s alternative data paints a rather bleak picture. The company currently has 0 open job positions, a 100% decline over the past few months. This drastic cutback in hiring may indicate efforts to improve margins or cut costs, but it's rarely a positive sign for long-term growth.

The business outlook has also declined by 12% over the last couple of months, which is another concerning trend. Customer acquisition strategies appear stagnant, as evidenced by the 0 daily downloads of their mobile app. Moreover, customer engagement reveals a lack of enthusiasm, with their Instagram followers count at 16,000, a 1% decrease, and Twitter followers at 6,700 with no significant changes.

Additionally, AltIndex’s AI score for RumbleON is a concerning 21, indicating a strong sell signal. This AI score takes into account a balanced perspective from fundamental, technical, and alternative data analysis, and suggests a highly cautious approach.

Conclusion and Recommendation

RumbleON exhibits mixed signals that make it a challenging stock to fully endorse at this point. The revenue and net income increases are commendable and suggest operational improvements; however, the sharp declines in EBITDA and longer-term revenue trends cannot be ignored. The technical indicators show short-term bullish momentum, yet the alternative data suggests deeper underlying issues with customer interest and operational scale-back.

Given these mixed indicators, especially with the strong sell signal from the AI score, my recommendation for RumbleON would be to hold if you already own the stock and consider buying only after observing a few more quarters of consistent fundamental and technical improvements.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.