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RumbleON - AI Stock Analysis
Analysis generated November 12, 2024
RumbleON, Inc. is an e-commerce platform that leverages technology to facilitate the buying, selling, trading, and financing of new and used vehicles. The company primarily operates in motorcycles and powersport vehicles, aiming to simplify the process of buying and selling vehicles online. While the company has experienced various trends in growth and revenue, there are mixed signals regarding its current performance and future outlook.
Fundamental Analysis
In the most recent quarter, RumbleON reported a revenue of $337 million, representing a 9.42% increase compared to the previous quarter. While this growth is promising in the short term, it's worth noting that revenue has declined by 12.00% when compared to the same quarter last year. This year-over-year decrease could be indicative of broader, more systemic issues affecting the company's sales performance.
Net income for the last quarter was $700,000, showcasing a significant growth of 93.20% relative to the previous quarter and a notable increase of 94.85% year-over-year. This rise in net income indicates that the company is managing to control its expenses more effectively or increase its profit margins, which is a positive sign for investors.
The EBITDA for the last quarter was $3 million, reflecting a concerning 66.67% decline compared to the previous quarter and a 44.65% decrease year-over-year. This downward trend in EBITDA suggests that the company’s operating performance is weakening, which could impact its long-term viability.
Technical Analysis
Currently, RumbleON's stock price is $4.96, marking a 3.50% decline over the past month. The stock has decreased by 11.74% over the past year, revealing a bearish trend in the longer term. The simple moving average (SMA10) is currently at 5.43, down slightly from the previous SMA10 of 5.45. This minor decline suggests a continuing downward trend in the stock price.
The Relative Strength Index (RSI) stands at 71.2, signaling that the stock is in overbought territory, which may lead to further price declines in the near future. These technical indicators collectively point towards a bearish outlook for the stock.
Alternative Data Analysis
Alternative data paints a rather bleak picture for RumbleON. The company has zero open positions, a stark 100% decrease in job postings over the last couple of months, indicating efforts to cut costs or improve margins. Adding to this concern, the business outlook has deteriorated by 12% over the same period.
Customer acquisition metrics are also troubling. The company’s website received an estimated 57,000 visitors, a sharp decline of 37% recently, suggesting a potential loss in consumer interest or market share. Furthermore, RumbleON has negligible mobile app downloads, with no significant change over the last few months.
Customer engagement on social media platforms is declining as well. The company has 16,000 Instagram followers and 6,700 Twitter followers, with a 1% decrease in followers on both platforms, indicating waning interest in the company. Moreover, AltIndex's AI score of 17, which takes into account fundamental, technical, and alternative data, signals a strong sell recommendation.
Conclusion and Recommendation
While RumbleON shows some positive short-term momentum in terms of revenue and net income growth, the overall picture remains concerning. The significant year-over-year decline in revenue, a substantial drop in EBITDA, and bearish technical indicators raise several red flags. The alternative data further underscores these concerns, showing declining customer interest and poor sentiment.
Given the mixed signals from fundamental analysis, negative technical indicators, and alarming alternative data, my recommendation is to exercise caution. In light of the AltIndex AI score of 17, I advise potential investors to consider this stock a strong sell for the time being until more consistent positive trends emerge in both fundamental and alternative data metrics.
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.
