Suffice it to say that special purpose acquisition company CF Acquisition Corp. VI (NASDAQ:CFVI) is not a run-of-the-mill shell company. Indeed, CFVI stock is one of the most controversial assets on Wall Street. But that’s not necessarily a bad thing.
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Sometimes, controversy can help to generate publicity and, eventually, revenues. While the revenues aren’t guaranteed, there’s no denying that Rumble, the social-media business that CF Acquisition Corp. VI brought to the stock market, is generating a lot of publicity.
Without a doubt, much of the attention surrounding Rumble as of late was connected to a particular podcast host with a sizable following. Yet, there’s more to the story here than meets the eye.
Sure, Rumble proposed a major deal with that podcast host, and this topic needs to be addressed. However, let’s not ignore the other recent developments concerning Rumble, which prospective investors need to take into consideration.
A Closer Look at CFVI Stock
Going back to where it all started, CF Acquisition Corp. VI disclosed its intention to reverse-merge with Rumble on Dec. 1, 2021. Prior to that, CFVI stock stayed close to $10, which is typical for pre-merger-announcement SPAC stocks.
As you might expect, the share price shot up after the merger announcement. This seems to be a pattern with SPAC stocks, though the rocket ride is usually followed by a cooling-off period.
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That’s exactly what happened with CFVI stock as it quickly ran to $15 but then fell back to $10 in late 2021. However, the stock has recently moved toward $15 again, so this is definitely a technical price level to keep an eye on.
In any event, please don’t over-leverage yourself. An investment in CF Acquisition Corp. VI and Rumble is speculative, so moderate position sizing is crucial to your financial health.
First Trump, Then Rogan
A few months ago, much of the attention surrounding Rumble was due to the company’s connection to former President Donald Trump.
Reportedly, CF Acquisition CEO Howard Lutnick confirmed that Trump Media & Technology Group was “using Rumble for distribution.”
This certainly provided a publicity boost for Rumble, which seeks to establish itself as an alternative media outlet for conservative voices. The idea behind Rumble, it seems, is to promote freedom of speech and to combat “cancel culture.”
Not long ago, House Minority Leader Kevin McCarthy chose Rumble has his preferred platform. Furthermore, Sen. Rand Paul, R-Kentucky, announced his endorsement of Rumble.
Those are significant news items, no doubt, but the real headline grabber was the idea that popular podcast host Joe Rogan could join Rumble.
As InvestorPlace contributor Samuel O’Brient explained, Rumble offered to pay up to $100 million over a four-year period for Rogan to join its video-sharing platform. Rogan turned down Rumble’s offer.
Other Developments to Consider
Meanwhile, there are other developments in progress. First of all, Rumble recently released its user-engagement statistics for December 2021 to January 2022. Prospective investors should be impressed with the data points:
- 19% growth in monthly active users
- 27% increase in minutes watched
- 14% rise in daily hours of uploaded video content
Second, Rumble is apparently expanding its business model. Specifically, the company has taken a stake in a payment-processing company called Parallel Economy.
According to the press release, Rumble will make Parallel Economy its preferred payment processor. Rumble CEO Chris Pavlovski emphasized not only the fiscal implications, but also the free-speech angle with the Parallel deal.
“With Parallel Economy, creators won’t have to worry about arbitrary cancellation. Giving creators financial security is a critical part of Rumble’s mission to protect a free and open Internet,” Pavlovski said.
The Bottom Line
Clearly, there’s a lot for investors to unpack when it comes to CFVI stock. Among other things, there are political and First Amendment issues to consider.
And even as Rogan turned down Rumble’s offer, there are other reasons to lean bullish, including the company’s impressive user-engagement stats and the deal with Parallel Economy.
Therefore, CFVI stock may be worthy of a small allocation, as long as you appreciate the risks involved.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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