RUM Group surged 11.4% today, which is a sharp move for a stock that had been treading water over the past week and sitting on a 90 day decline. The market is clearly cheering the headline that RUM Group nearly doubled quarterly revenue to US$40.4m and laid out its first look at life as a combined video and artificial intelligence infrastructure company.

Behind that jump sits a harder truth. The company still reported a quarterly net loss of about US$79.1m, with one time acquisition and data center costs weighing heavily on the bottom line. The gap between that loss and the market reaction is the real story investors need to unpack next.

Is RUM Group’s sharp share price jump pricing in a genuine turnaround, or just stretching an already…