By now, many investors are aware that Digital World Acquisition Corp. (NASDAQ:DWAC) is bringing former President Donald Trump’s Truth Social public. DWAC stock rocketed upward reaching highs near $95 to stabilize in the $50-$60 range.
Its emergence onto the scene has left others searching for stocks which could rise with the growth of the Truth Social platform.
CFVI stock is clearly a contender among them.
The Rumble IPO and CFVI Stock
On Dec. 1 CF Acquisition Corp. announced that it will be taking video platform Rumble public. The Rumble platform bills itself as a neutral video platform. That news immediately made CFVI stock relevant. Over the next week share prices would rise 50% to $15.
CF Acquisition Corp. was interesting in early December because of its connection to the Rumble video sharing platform. Investors of many backgrounds, not only those on the right, are increasingly fed up with certain aspects of the media.
Rumble has shown that its platform already has legs. In Q3 of 2020, Rumble had 1.6 million average monthly active users. A year later that number had grown to 36 million average monthly users.
The point to note here is that any connection between Rumble and Truth Social had not yet been established in early December. Rumble’s business prowess, however, was already established.
So investors had an attractive investment in front of them prior to any Donald Trump/DWAC stock/Truth Social connection.
Rumble was a growing video sharing platform with a neutral stated bias and $400 million in special-purpose acquisition company (SPAC) funding ahead of it. That’s what investors knew in early December.
It wasn’t until weeks later that a more substantial connection was announced.
On Dec. 14, Trump Media & Technology Group announced its partnership with Rumble Inc. Rumble is partnering with Trump Media & Technology Group (TMTG) to deliver video and streaming for Truth Social, Trump’s social media platform being brought public through DWAC stock.
Rumble and TMTG are also negotiating for Rumble to deliver TMTG’s on-demand subscription video service, TMTG+.
There are a few ways to consider this announcement. First of all, there’s the Trump connection. Rumble has proven itself to be a well-operated business from the standpoint of user growth over the last year.
If Rumble provides excellent infrastructure for Truth Social it can explode on that alone. Clearly Truth Social could become a massive social media platform. There’s no denying Trump’s reach and media savvy.
Further, let’s imagine an alternate scenario. Let’s imagine Truth Social becomes a modestly successful platform underpinned by Rumble’s infrastructure. Rumble will then be a likely candidate for other platforms that emerge in response to the backlash currently occurring.
The company’s founder and CEO Chris Pavlovski notes “Rumble is a high-growth neutral video distribution platform. Rumble has created rails and independent infrastructure that are designed to be immune to cancel culture. Rumble’s mission is to restore the internet to its roots by protecting a free and open internet.”
What to Do With CFVI
CFVI stock hasn’t yet gained a lot of traction. It has merely moved a few dollars from the $10 level. I see Rumble as a natural reaction that dovetails with the zeitgeist. Investors are increasingly aware of the power that platforms have. For those who believe liberal bias is excessive across mass media, CFVI stock then makes a lot of sense.
For those who are big fans of Trump, investing in CFVI also makes a lot of sense. One need not even like Trump or necessarily even be a proponent of right-wing politics to see the inherent attraction here.
Investors who understand that can capitalize now as CFVI stock hasn’t really caught on yet.
On the date of publication, Alex Sirois 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.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.